ASEC BLOG

The Africa Sustainable Energy Centre (ASEC) has strongly opposed any plans by the Public Utilities Regulatory Commission (PURC) to increase electricity tariffs.  The think tank argues that inefficiencies, illegalities, and a lack of consumer value in the sector must be addressed before any price adjustments are considered. ASEC insists that a rigorous national debate and a thorough examination of the electricity distribution system must precede any tariff hikes. The organisation contends that the Public Utility Act prioritises consumer interests in setting electricity rates, but this mandate has been overlooked for years. While reflective tariffs are essential for operational sustainability, ASEC maintains that the sector must resolve its deep-seated inefficiencies before shifting additional financial burdens onto consumers. “ASEC demands a regulatory framework that requires electricity distribution companies to show proof of at least a 95% collection rate before any tariff increa...

The 2025 Budget, presented by Dr. Cassiel Ato Forson, MP, Minister for Finance, outlined significant concerns and proposed reforms in Ghana’s energy sector. The budget emphasized the need to address the sector’s financial shortfalls, inefficiencies, and mounting debt while implementing strategies to enhance sustainability and efficiency. The energy sector remains a crucial pillar of Ghana’s economic growth, and addressing its challenges is essential for ensuring long-term stability, industrialisation, and social well-being. Key Issues in the Energy Sector The energy sector has been grappling with substantial financing shortfalls, which have escalated over the years. • The government spent GH¢20.8 billion in 2024 to support the energy sector, diverting funds that could have been used for social services and infrastructure development. • The financing gap for the 2025 fiscal year is projected at GH¢35 billion, despite previous interventions. • The total financing shortfall for the 2...