The Electricity Company of Ghana (ECG ) has proposed a 224 percent increase in its Distribution Service Charge over the 2025–2030 tariff period.
At a stakeholder meeting with the Public Utilities Regulatory Commission (PURC) on Monday, September 8, 2025, ECG justified that proposed upward increment, citing the need to restore financial viability and sustain operations.
The proposed increment in the Distribution Service Charge is from the current 19.0875 pesewas per kilowatt-hour to 61.8028 pesewas.
The proposal cites rising inflation, foreign exchange volatility, interest rates, and the need for full recovery of investment costs as the main drivers.
ECG’s projections show annual revenue requirements rising steadily, averaging GHS 9.1 billion across the five-year period. The company anticipates its operational costs, human resource expenses, depreciation, capital recovery payments, and tax obligations will continue to climb, necessitating a significant tariff review.
ECG has recommended a comprehensive set of changes to the tariff structure;
- Collapse of tariff bands to two categories for residential customers and one for non-residential users, aimed at simplifying billing.
- Elimination of cross-subsidisation to ensure equitable allocation of costs and non-discriminatory tariffs.
- Net Metering Tariff Structure for customers with grid-connected renewable energy, in line with government renewable energy policy.
- Adoption of the Bank of Ghana exchange rate for tariff determination to cushion against forex volatility.
- Service charge allocation exclusively to ECG for meter maintenance and replacement.
- Introduction of a public lighting tariff to resolve funding shortfalls for street lighting.
- Full recovery of investment costs for completed and ongoing projects.
- Inclusion of liquid fuel costs during plant shutdowns in the Weighted Average Cost of Fuel (WACOF).
- Factoring in the full reserve margin cost of 18 percent into tariffs.
- Monthly automatic tariff adjustments instead of the current quarterly system.
In terms of energy procurement, ECG anticipates obtaining 22,784 GWh from Independent Power Producers and the Volta River Authority in 2025, with 21,478 GWh transmitting 21,478 GWh after accounting for system losses.
It is anticipated that losses will progressively decrease by 1% annually from the 27.68 percent recorded in 2024.
By 2029, the utility projects that the bulk generation cost will increase from 253.78 GHp/kWh in 2025 to 302.73 GHp/kWh.
Over the same time period, the cost rises to between 313.02 GHp/kWh and 359.09 GHp/kWh with reserve margin taken into account.
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Source:Lovinghananews.com
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