The Electricity Company of Ghana (ECG) has submitted a proposal to the Public Utilities Regulatory Commission (PURC) seeking a 225% increase in its Distribution Service Charge (DSC1) for the period 2025–2029.

If approved, the tariff will rise from GHp19.0384/kWh to GHp61.8028/kWh, a move ECG says is necessary to prevent financial collapse and secure a reliable power supply for its 4.87 million customers nationwide.

ECG argues that the current tariff structure is unsustainable. At present, DSC1 accounts for only 11% of the total electricity value chain cost, well below the global benchmark of 30–33%.

Read: Court Remands NPP’s Abronye DC into Police Custody

The company also cited the sharp depreciation of the Ghana cedi by about 74% between 2022 and 2024, which it says has slashed the real value of its revenue by nearly 45%.

ECG insists that the proposed increment will directly benefit consumers through improved service delivery. Since 2022, the company has invested US$408 million in substations, automation, and the rollout of over one million smart meters.

With the new revenue, ECG plans to:

Reduce power outages, with SAIDI projected to fall from 32.5 hours (2024) to 19.2 hours (2029).

Cut SAIFI from 16 to 9 over the same period.

Lower system losses from 27% to 22%.

Read: What Does “Offensive Conduct” Mean Under Ghana’s Criminal Laws?

Boost revenue collection efficiency from 87% to above 90%.

To address concerns about billing and accountability, ECG intends to:

Deploy 3 million additional smart meters to ensure accurate billing and prevent theft.

Replace faulty meters at no extra cost.

Enhance complaint resolution and improve voltage supply.

Expand the use of the ECG Power App for digital payments, credit purchases, and service requests.

The utility also stressed that a cost-reflective tariff will reduce reliance on government bailouts, freeing state funds for other national priorities.

The PURC will review ECG’s proposal, hold public consultations, and decide whether to approve the tariff adjustment. Any changes will only take effect after formal approval and a public announcement.

Source: Myjoyonline.com