The Electricity Company of Ghana (ECG) has submitted a proposal to the Public Utilities Regulatory Commission (PURC) seeking a 225 percent increase in its Distribution Service Charge (DSC) as part of its new billing framework.
According to the company, the adjustment is necessary to cover rising costs in transporting electricity to millions of households and businesses across the country and to avert the financial collapse of its operations.
If approved, the DSC1 tariff will rise from its current GHp19.0384/kWh to GHp61.8028/kWh for the period 2025–2029.
ECG, which serves more than 4.87 million customers—representing over 73 percent of Ghana’s population—argues that the existing tariff structure is unsustainable. The company cited a 74 percent depreciation of the Ghana cedi between 2022 and 2024, which it says has eroded the real value of its revenue by about 45 percent.
To address these challenges and respond to persistent public complaints about service quality, ECG outlined plans to channel the additional revenue into critical infrastructure upgrades. Since 2022, the state-owned power distributor has invested more than US$208 million in substations, the rollout of over one million smart meters nationwide, and related automation software.
The company projects that by 2029, the System Average Interruption Duration Index (SAIDI) will drop from 32.5 hours in 2024 to 19.2 hours, while the System Average Interruption Frequency Index (SAIFI) will reduce from 16 to 9. System losses are expected to fall from 27 percent to 22 percent, with revenue collection efficiency improving from 87 percent to above 90 percent.
As part of its modernization drive, ECG also plans to deploy close to three million additional smart meters to curb power theft and strengthen revenue mobilization. Faulty meters in homes and businesses, the company noted, will be replaced at no extra cost to customers. It further assured the public of improved customer support and faster issue resolution through its digital platforms.
The final decision on the proposed tariff adjustment rests with the PURC, which is mandated to review such submissions and hold public consultations before any implementation.
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Story by Sika Togoh|univers.ug.edu.gh
