Utility tariff increases erode 2026 wage gains – Ghana Federation of Labour

The Ghana Federation of Labour (GFL) has criticised the newly announced utility tariff increases, describing them as unfair and detrimental to workers’ livelihoods. According to the federation, the hikes will wipe out the modest wage improvements secured for 2026.

Speaking on Ahotor FM’s Yepe Ahunu programme on Saturday, December 6, 2026, GFL Secretary General Abraham Koomson said the latest adjustments effectively nullify the 9% base pay increase agreed for public sector workers.

“Government is taking back through utility hikes what it has given in wages,” Koomson argued.

He noted that organised labour reluctantly accepted the 9% adjustment due to the prevailing economic difficulties, but persistent inflation and rising utility costs continue to erode workers’ purchasing power.

Koomson also expressed concern that organised labour’s representative on the Public Utilities Regulatory Commission (PURC) board, Dr Kwabena Otoo—an economist and Deputy Secretary General of the Trades Union Congress—was sidelined in the decision-making process on the tariff review.

“He has been instrumental in minimum wage and base pay negotiations, yet he was excluded from discussions leading to these tariff adjustments,” he said.

The PURC recently announced new tariffs for 2026, citing increasing operational costs and the need to sustain reliable electricity and water services. The increments include a 9.86% rise in electricity tariffs and a 15.92% increase in water charges across all customer categories, effective January 1, 2026.

These adjustments follow a pattern of recent tariff reviews, which the Commission often attributes to inflation, depreciation of the cedi, and rising fuel and water treatment costs. However, labour unions and consumer advocacy groups maintain that the frequent hikes worsen the cost-of-living crisis for already burdened households.