IMF endorses utility tariff hike as crucial step for stabilizing energy sector

The International Monetary Fund (IMF) has thrown its support behind the Public Utilities Regulatory Commission’s (PURC) recent decision to increase utility tariffs in Ghana.

The adjustment includes a 14.75% increase in electricity tariffs and a 4.02% rise in water tariffs across all consumer categories.

According to Stephane Roudet, IMF Mission Chief to Ghana, the tariff hike is a necessary step to strengthen the financial state of key State-Owned Enterprises (SOEs), particularly the Electricity Company of Ghana (ECG).

Speaking at a joint press briefing with the Bank of Ghana and Ghana’s Finance Minister, Mr. Roudet emphasised the need for sustainable financing to maintain a reliable power supply across the country.

“The importance of this hike is to support SOEs and also ensure their finances are sustainable,” Roudet said.

“We are aware of the implications, especially for the vulnerable, but it is necessary to ensure ECG can meet its financial obligations to power producers and guarantee uninterrupted electricity for Ghanaians”, he mentioned.

He also reiterated the IMF’s commitment to working with the Ghanaian government to develop social interventions aimed at cushioning the impact of these adjustments on the most vulnerable populations.

“We are very mindful of the needs of the vulnerable in society and want to ensure the government implements policies to protect the poor while improving the conditions of workers across all sectors,” he added.

The PURC earlier also defended the recent increases in utility tariffs, insisting that consumers are receiving value for money despite persistent complaints over erratic power supply and inconsistent water flow in parts of the country.