ECG urges PURC to approve new tariff to sustain $408m power investments
The Electricity Company of Ghana (ECG) says it has invested over USD408 million in the past three years to strengthen electricity supply and customer service, and is urging the Public Utilities Regulatory Commission (PURC) to approve a new tariff to sustain these gains.
According to ECG, it has proposed an upward revision of its Distribution Service Charge (DSC1), the portion of the electricity tariff allocated to ECG for distribution and retail services, from GHS0.190384 to GHS0.618028 per kilowatt-hour for the 2025 to 2029 regulatory period.
Dr Charles Nii Ayiku, General Manager for External Communications, explained that severe depreciation of the Ghana cedi has eroded ECG’s dollar-denominated revenue.
He noted that in 2022, ECG’s charge was equal to 2.27 US cents per kilowatt-hour, but today it is worth only 1.23 cents.
This, he said, makes it difficult for ECG to maintain and expand the network without upward tariff adjustments.
He clarified that the proposed Average End-User Tariff (AEUT) translates to an overall increase of about 24 per cent on consumer electricity bills, distinct from the DSC1 adjustment.
Dr Ayiku said the tariff adjustment would help recover the cost of recent network upgrades and modernisation projects, including new substations in Bibiani, Obuasi, Koforidua and Afari, the installation of over one million smart meters nationwide, and digital system enhancements such as the ECG Power App for bill payment, credit purchases and lodging service complaints online.
He added that these investments have already improved supply reliability and operational efficiency.
ECG projects that with the proposed tariff, average outage hours will drop by 41 per cent and system losses will fall from 27 per cent to 22 per cent by 2029. Customers can also expect better voltage stability, faster response times and more convenient digital services.
“We are determined to build a stronger ECG that can deliver reliable service without depending on government bailouts. The proposed tariff is essential to achieving that goal,” Dr Ayiku emphasised. ECG assured that with PURC oversight, all funds from the revised tariff will be reinvested to enhance power delivery for households and businesses.
