The Institute for Energy and Policy Research (INSTEPR) has called for consistency in setting levels of utility tariff. INSTEPR insists that the Public Utilities Regulatory Commission (PURC) must adopt a consistent and standardised methodology for its quarterly tariff adjustments, citing what it describes as methodological inconsistencies in recent reviews.
In a statement reviewing the Commission’s third quarter tariff adjustment, INSTEPR noted that, while the Quarterly Tariff Adjustment Mechanism is designed to track key economic variable including the cedi/dollar exchange rate, inflation, electricity generation mix, and fuel cost, the application such parameters has not been uniform over time.
According to the Institute, the mechanism is intended to prevent both over-recovery and under-recovery of utility revenues. It warned that, under-recovery could undermine the ability of utility providers to reliably supply electricity and water, while over-recovery places an unnecessary financial burden on consumers.
INSTEPR is concerned that, the PURC has alternated between using historical data and forward-looking projections in different quarters when calculating weighted averages, making it difficult to assess the consistency of tariff decisions.
“The switching between methodologies makes it difficult to analyse the consistency of tariff adjustments undertaken by the Commission,” the statement noted.
The Institute further argued that the third quarter tariff adjustment which proposes increases of 3.49% for electricity and 0.85% for water was not fully supported by the Commission’s own published data. It referenced the PURC’s 22 June 2026 statement, which reportedly showed a cedi depreciation of 0.2%, a 17.74% decline in inflation, and a 1.58% downward adjustment in gas prices (WACOG), with no under-recoveries recorded in the previous quarter.
Against this backdrop, INSTEPR is urging the regulator to suspend the proposed tariff adjustments to ease pressure on consumers amid rising cost-of-living concerns.
The Institute has therefore called on the Public Utilities Regulatory Commission to establish a standardised, transparent, consistent and verifiable methodology for future quarterly tariff reviews to enhance predictability and public trust in the tariff-setting process.
