ICEG rejects ECG’s proposed power tariff hike
The Institute of Climate and Environmental Governance (ICEG) has rejected a proposal by the Electricity Company of Ghana (ECG) to increase its Distribution Service Charge (DSC) by 225 percent for the 2025 to 2029 regulatory period, describing the move as unfair and unsustainable.
In a statement, ICEG acknowledged the need for moderate tariff adjustments to meet operational costs but argued that ECG’s request to raise charges from GHS19.04/kWh to GHS61.8/kWh defies the principles of fairness, accountability and sustainability.
The institute warned that the proposed increment would impose severe financial strain on households and businesses already grappling with high inflation, a weakening cedi and rising living costs.
“ECG’s failure to address the underlying causes of its inefficiencies, which manifest in high commercial and technical losses, weak governance structures and wastage, should not be at the expense of the ordinary Ghanaian,” the statement noted.
ICEG also faulted ECG for not disclosing how much additional revenue it had accrued from recent currency gains, noting that exchange rates have been a major factor in tariff determinations.
The group cautioned that the proposed increase could worsen economic conditions, particularly for small and medium-sized businesses, while further tightening the squeeze on households whose disposable incomes have remained stagnant.
“Energy remains a critical commodity that affects livelihoods, healthcare delivery and education. ECG’s proposal lacks social protection measures that safeguard the poor and lifeline consumers,” ICEG stressed.
The institute recommended performance-based regulation, public-private partnerships to modernise the national grid and aggressive loss-reduction programmes to improve efficiency.
It further urged the Public Utilities Regulatory Commission (PURC) to subject ECG’s proposal to strict scrutiny, ensuring that any tariff review is tied to measurable performance benchmarks.
“Ghanaians deserve affordable, reliable and sustainable power,” ICEG added.
