The Electricity Company of Ghana (ECG) has asked the Public Utilities Regulatory Commission (PURC) to approve a 225% increase in its Distribution Service Charge (DSC1), warning that without the adjustment the utility risks financial collapse.
If granted, the proposal would raise the DSC1 from GHp19.04/kWh to GHp61.80/kWh for the 2025–2029 tariff cycle.
ECG says the increase is critical to sustaining operations, reducing outages, and ensuring reliable power supply to its 4.87 million customers, over 73% of the national population.
The company argues that the current tariff structure is “unsustainable,” with DSC1 covering just 11% of electricity value chain costs, far below the global benchmark of 30–33%.
It blamed the cedi’s 74% depreciation between 2022 and 2024 for eroding nearly half of its revenue in real terms.
ECG says the higher tariff will fund key investments, including substation upgrades, system automation, and three million additional smart meters, building on US$408 million already spent since 2022. By 2029, it projects outage durations (SAIDI) will drop from 32.5 to 19.2 hours, outage frequency (SAIFI) from 16 to 9, and system losses from 27% to 22%.
The utility has also pledged faster complaint resolution, free replacement of faulty meters, improved voltage supply, and greater accountability through smart metering.
A cost-reflective tariff, ECG insists, would reduce reliance on government bailouts and allow public funds to be redirected to other national priorities.
The PURC is expected to hold consultations before announcing its decision on the proposed hike.
Source: Myxyzonline.com
