By: Mabel Adorkor Annang
The Electricity Company of Ghana, ECG has proposed a 225 percent increase in its Distribution Service Charge, DSC1 over the 2025–2030 tariff period, citing the need to restore financial viability and sustain operations.
Justifying its tariff proposal submission to the Public Utilities Regulatory Commission, PURC, ECG requested an upward adjustment of the DSC1 from the current 19.0875 pesewas per kilowatt-hour to 61.8028 pesewas.
At the PURC stakeholder engagement for the 2025-2030 Major tariff review in Accra, ECG explained that the increment is necessary to align with inflation, foreign exchange fluctuations and interest rate pressures while ensuring full cost recovery for investments in the distribution network.
ECG said low tariff levels in recent years have weakened its profitability and liquidity, with the company recording negative returns on equity.
The utility stressed that without cost-reflective tariffs, its ability to maintain reliable electricity supply and invest in infrastructure will be jeopardized.
Speaking at the PURC stakeholder engagement a Board Member of the Commission Nana Yaa Jantuah said the tariff proposals from the Utilities is key in setting up the 2025 to 2030 tariff review to provide quality of service.
“ The PURC has the mandate to ensure the financial viability of the utility service provider, and also at the same time ensure that there is quality of service for the customer. You know that the cost of unserved energy is very expensive, that is if you don’t have electricity through the grid to your home then you depend on other sources of electricity. Certainly, it will not be the same, the quality is different, the danger is out there.” She explained.
The Executive Secretary of PURC, Dr. Shafik Suleman said the Commission will be undertaking public hearings across the country to enhance the relationship between utilities and consumers in order to promote transparency, inclusiveness and accountability in tariff setting.
Dr. Shafic added that the goal of creating this platform is to promote transparency, inclusiveness, and accountability in tariff certainty while ensuring that the commission’s decision strikes a balance of interest informed by both economic realities and social considerations. This stakeholder engagement platform and upcoming regional public hearings will help to ensure that the outcome of the major tariff review is credible, sustainable, and in the best interest of our country.
The General Manager of ECG, Moses Oakley, called for the introduction of a Public Lighting Tariff to cover costs.
Mr. Oakley intimated that “we are requesting the regulator to increase our tariff from today’s price of 17.89 as at July 2025, but as at December it was 19.084 percent per kilowatt hour to 61 percent which is the average of the 5 years 61.8028 pesewas per kilowatt hours, and this is 225 percent. ECG is requesting the regulator to collapse the tariff bands in the residential and non-residential bands.
Other Utilities such as Ghana Gas, Ghana Grid Company, Volta River Authority, Electricity Company of Ghana, Northern Electricity Distribution Company Limited, Enclave Power Company, Ghana Water Company, Ghana National Gas Company also presented their tariff proposal to PURC.
