Ghanaians overpaid GHc1.5bn for power in Q4 2025 – CEMSE report
24th February 2026
The Centre for Environmental Management and Sustainable Energy (CEMSE) has disclosed that electricity consumers in Ghana may have overpaid as much as GH¢1.5 billion in the fourth quarter of 2025 due to flawed tariff calculations.
In a report released by the energy policy think tank, CEMSE attributed the overpayment to what it described as inflated exchange rate and inflation assumptions used by the Public Utilities Regulatory Commission (PURC) in setting electricity tariffs.
According to the report, PURC applied a projected exchange rate of GH¢11.9735 to the US dollar for the fourth quarter of 2025. This was later revised upward to GH¢12.3715 to cater for under-recovery claims by utilities.
However, CEMSE found that the actual average exchange rate during the period was significantly lower, at GH¢10.8733 to the dollar.
This disparity, the report said, resulted in an over-recovery of GH¢1.1002 on every dollar factored into tariff calculations.
“When applied to total quarterly electricity consumption, consumers effectively paid for costs utilities did not incur — amounting to roughly GH¢1.5 billion,” the report noted.
CEMSE also raised concerns about inflation assumptions used in the tariff-setting process. While PURC applied an annual inflation rate of 12.43 percent, the actual quarterly average inflation stood at 6.6 percent — almost half the projected figure.
The organisation further observed that repeated tariff increases have failed to deliver stable revenue for the Electricity Company of Ghana (ECG).
Despite a 14.75 percent tariff hike, ECG’s revenue reportedly fell from GH¢1.4 billion in April 2025 to GH¢1.3 billion in May, peaked at GH¢1.6 billion in June, and dropped again to GH¢1.3 billion by August.
Based on current economic indicators, CEMSE is calling for an electricity tariff reduction of about 11 percent in the first quarter of 2026.
The organisation cited an improved exchange rate of approximately GH¢10.99 to the dollar and a projected inflation rate of 3.4 percent as justification for the proposed cut.
CEMSE stressed that any over-recoveries must be formally acknowledged and credited to consumers before fresh tariff adjustments are introduced.
“Failure to act could erode public confidence in the regulatory framework and further increase pressure on households and businesses,” the report warned.