Majority Leader Mahama Ayariga has justified the recent 2.45% increase in electricity tariffs, arguing that the move is crucial to safeguarding the financial health of the Electricity Company of Ghana (ECG) and ensuring the continued stability of the country’s power supply.

The tariff adjustment, announced by the Public Utilities Regulatory Commission (PURC) and set to take effect on July 1, 2025, has sparked public debate, with critics questioning the timing and rationale.

However, Ayariga insists the hike is unavoidable.

Speaking in Parliament, the Majority Leader explained that ECG has accumulated significant debt due to prolonged periods without appropriate tariff adjustments.

He warned that failure to address the financial burden could lead to a collapse of the power distributor, potentially resulting in widespread power outages.

“Despite recent gains in macroeconomic stability, ECG’s debt overhang remains a serious threat.

This tariff adjustment is a necessary step to protect the company from collapse and to maintain an uninterrupted power supply for all Ghanaians,” Ayariga stated.

His remarks followed concerns raised by Minority Chief Whip Frank Anor Dompreh, who had called for the Executive Secretary of the PURC to be summoned before Parliament to explain the decision.

In response, Mr Ayariga proposed instead that the Minister for Energy and Green Transition appear before the House to provide a broader policy explanation for the tariff increment.

Mr Ayariga further noted that consumers, as key stakeholders in the power sector, must bear part of the cost of sustaining the industry.

He maintained that while the adjustment may be unpopular, it is a pragmatic response to prevent a looming crisis in the energy sector.

The upcoming appearance of the Energy Minister in Parliament is expected to provide more clarity on the tariff decision and the broader challenges facing ECG.