The Electricity Company of Ghana (ECG) has submitted a proposal to the Public Utilities Regulatory Commission (PURC) seeking approval for a massive 225% increase in its Distribution Service Charge (DSC1).

The proposal was presented at PURC’s stakeholders’ engagement for the 2025–2030 major tariffs review on Monday, September 8, 2025.

The proposed adjustment, covering the period 2025–2029, would raise the DSC1 from its current GH¢0.190384/kWh to GH¢0.618028/kWh.

ECG says the increase is “critical to avert financial collapse, strengthen infrastructure, and improve the reliability of electricity supply.”

The company, which serves over 73% of Ghana’s population, approximately 4.87 million customers, argues that the existing tariff is “unsustainable.”

According to ECG, “the DSC1 accounts for just 11% of the total electricity value chain cost, far below the global benchmark of 30–33%.”

“The sharp 74% depreciation of the cedi between 2022 and 2024 has eroded its real revenue value by 45%, leaving operations severely constrained,” ECG stated.

To justify the increase, ECG outlined a detailed investment plan aimed at improving service delivery.

The company has already committed US$408 million since 2022 to new substations, automation, and the deployment of over one million smart meters.

With additional revenue from the proposed tariff, ECG intends to roll out three million more smart meters for accurate billing and theft prevention, replace faulty meters at no cost to customers, enhance complaint resolution timelines, and improve voltage supply consistency.

If approved, ECG projects significant reductions in power outages by 2029.

The company also highlighted the continued expansion of its ECG Power App, which allows customers to purchase credit, check balances, and file complaints digitally.

ECG emphasised that a cost-reflective tariff would reduce its reliance on government bailouts, freeing up public funds for other national priorities.

Meanwhile, PURC is expected to review the proposal, conduct public consultations, and make a final determination.

AM/MA

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