NEDCo proposes 171% power tariff increase

By Praisebell Rosemond Larbi

The Northern Electricity Distribution Company (NEDCo) has submitted a proposal to the Public Utilities Regulatory Commission (PURC), seeking approval for a steep 171 per cent increase in its Distribution Service Charge (DSC) for 2025.

The request follows similar tariff proposals by the Electricity Company of Ghana (ECG), the Ghana Grid Company (GRIDCo) and the Volta River Authority (VRA), all citing rising operational and financial challenges.

If approved, NEDCo’s tariff will rise from 56.474 pesewas per kilowatt-hour to 153.03 pesewas, marking one of the sharpest adjustments in the utility’s history.

Revenue and cost pressures

NEDCo argues that its unique operational environment has placed severe strain on its finances. Covering a geographically vast area with a sparse customer base, the company says it faces significantly higher costs compared to other utilities.

According to the company, only 0.01 per cent of its customers are on special load tariffs, limiting its ability to cross-subsidise revenue streams.

For 2025, NEDCo projects a variable cost per unit of 67.10 pesewas and fixed costs of 85.92 pesewas, which together add up to the proposed DSC of 153.03 pesewas.

Additionally, much of its capital expenditure, including network expansion, meters and IT infrastructure, is forex-denominated, leaving the company exposed to exchange rate volatility and import cost pressures.

Public hearing and assurances

At a PURC public hearing in Accra on Tuesday, 9 September 2025, Hashim Iddrisu, NEDCo’s Director in Charge of Commercial, defended the proposal, insisting that the increase is necessary to sustain operations and improve efficiency.

“We’re proposing an increase of 171 percent. We expect that the new tariff we’re proposing will have an impact on our performance, our collection rate will increase, and distribution losses will improve from 31 percent to 21 percent,” Mr Iddrisu said.

He further explained that without a substantial adjustment, NEDCo will be unable to invest in critical network improvements, replace obsolete equipment or address long-standing service reliability challenges in the northern sector.

Consumer concerns

Consumer advocacy groups have raised concerns that such a sharp hike could worsen the cost of living and increase the burden on households already struggling with high inflation.

Civil society organisations have urged PURC to balance the sustainability of utility companies with the affordability needs of consumers.