The Electricity Company of Ghana (ECG) has submitted a proposal to the Public Utilities Regulatory Commission (PURC) seeking approval for a 225% increase in its Distribution Service Charge (DSC1). If approved, the new tariff will see DSC1 rise from GH₵0.190384/kWh to GH₵0.618028/kWh for the period 2025–2029.
According to ECG, the drastic increment is necessary to prevent financial collapse and secure a stable and reliable power supply for its 4.87 million customers, who represent over 73% of Ghana’s population.
Why ECG Says the Hike is Needed
- The DSC1 currently makes up just 11% of the total electricity cost, compared to the global benchmark of 30–33%.
- The cedi’s depreciation of 74% between 2022 and 2024 has slashed the real value of ECG’s revenue by 45%.
- Without a cost-reflective tariff, ECG warns it will continue relying on government bailouts, which drain national resources.
Planned Benefits of the New Tariff
ECG says the proposed revenue will be invested in critical infrastructure to address service quality concerns:
- US$408 million already invested since 2022 in substations, automation, and smart meters.
- 3 million additional smart meters planned to ensure accurate billing and curb power theft.
- Faulty meter replacements at no extra cost to customers.
- Improved response times for complaints and more stable voltage supply.
Projected Service Improvements by 2029
- Power outages (SAIDI) to drop from 32.5 hours to 19.2 hours annually.
- Interruption frequency (SAIFI) to reduce from 16 to 9 incidents annually.
- System losses expected to fall from 27% to 22%.
- Revenue collection efficiency projected to rise from 87% to over 90%.
Digital Transformation
ECG is also expanding the use of its Power App, which allows customers to:
- Buy prepaid credit.
- Check balances.
- Lodge complaints without visiting ECG offices.
What’s Next?
The PURC will review ECG’s proposal, hold public consultations, and make a final decision. Any new tariffs will only take effect after official approval and public notice.
If approved, this will mark one of the steepest electricity tariff adjustments in Ghana’s history, with direct implications for households and businesses nationwide.
source: myjoyonline
