The Electricity Company of Ghana (ECG) says it has invested more than US$408 million in the last three years to improve electricity supply and customer service, and is now asking the Public Utilities Regulatory Commission (PURC) to approve a new tariff that will help sustain these gains.

ECG tariff hike proposal draws strong pushback

According to the General Manager for External Communications at ECG, Dr Charles Nii Ayiku Ayiku, the company proposes increasing its Distribution Service Charge (DSC1) from 19 pesewas to GHp61 pesewas per kilowatt-hour between 2025 and 2029.

He said that the increase is needed because the Ghana cedi has lost about 74% of its value since 2022, reducing the company’s revenue in dollar terms by almost half.

Dr Ayiku indicated that the Distribution Service Charge 1(DSC1) is the portion of the electricity tariff allocated to ECG for its electricity distribution and retail services.

He was also quick to add that the proposed percentage increase in electricity bills or the new Average End User Tariff (AEUT) is about 24% which is different from the DSC1, so, the average end user tariff is 24%.

“Back in 2022, what we charged was equal to 2.27 US cents per kilowatt-hour. Today, it is worth only 1.23 cents. This makes it difficult for ECG to maintain and expand the network without upward tariff adjustments,” he said.

Furthermore, Dr Ayiku intimated that the new tariff will help ECG recover the cost of its recent investments, including new substations in Bibiani, Obuasi, Koforidua, and Afari; the installation of over one million smart meters; and upgrades to digital systems such as the ECG Power App, which allows customers to pay bills, buy credit, and make complaints online.

Customers, he assured, will directly benefit through system reliability and stability, improved voltage, faster response times, and more convenience.

He expressed optimism in the ECG projects, saying that by 2029, average outage hours will fall by 41% and system losses will reduce from 27% to 22%.

PURC, utilities face off over tariff hike proposals

“We are determined to build a stronger ECG that can deliver reliable service without depending on government bailouts. The proposed tariff is essential to achieving that goal,” Dr Ayiku said.