By Benjamin Nii Nai Anyetei
The Volta River Authority (VRA) has submitted a proposal to the Public Utilities Regulatory Commission (PURC) requesting a 59% increase in its Bulk Generation Charge (BGC).
The Authority argues that the increase is critical to fully recover the cost of power generation supplied to distribution companies (DISCOs).
Explaining the request during a public hearing on Tuesday, 9 September, Mr Evans Sowah Mensah, Principal Economic Analyst at VRA, said:
“Over the years, VRA has not been compensated for providing reactive power to assist the national interconnected system. We are saying that on an annual basis, VRA should be given compensation of $30.49 million for Akosombo reactive power generation, and Kpong Hydro Dam, a little bit of $30,000.
“Justification for tariff increase, we are saying that we want to recover the cost of our power supply to the distribution companies, recover the cost of transmission losses and also be compensated for the provision of ancillary services.
“We are requesting the PURC to increase the existing tariff of BGC from 45.0892 Ghana pesewas per kilowatt-hour to 71.8862 Ghana pesewas per kilowatt-hour.”
Other utilities have also submitted tariff proposals to the PURC for review under the 2025–2029 multi-year tariff framework:
- Electricity Company of Ghana (ECG): 55.7671 pesewas/kWh
- Northern Electricity Distribution Company (NEDCo): 92.7333 pesewas/kWh
- Enclave Power Company Limited (EPCL): 147.1775 pesewas/kWh – the highest request
Separately, the Electricity Company of Ghana has proposed a 224% increase in its Distribution Service Charge (DSC1) for the 2025–2029 tariff period. The charge would rise from GHp19.0875/kWh to an average of GHp61.8028/kWh.
ECG argued that the adjustment was essential to restore financial stability, citing inflation, exchange rate depreciation, and rising interest costs as major drivers. The company said its annual revenue requirements are projected to average GHS 9.1 billion over the next five years, reflecting higher operational expenses, staff costs, depreciation, capital recovery, and taxes.
If approved, the proposed hikes could significantly increase electricity tariffs for households and businesses, raising concerns over affordability, cost recovery, and the long-term sustainability of Ghana’s power sector.
