The Electricity Company of Ghana (ECG) has proposed a 225% increase in its Distribution Service Charge (DSC1) to the Public Utilities Regulatory Commission (PURC), arguing that the adjustment is necessary to prevent financial collapse and guarantee stable electricity supply.
If approved, the charge will rise from GHp19.0384/kWh to GHp61.8028/kWh for the period 2025–2029. ECG, which serves more than 73% of Ghana’s population and 4.87 million customers, maintains that the current tariff is unsustainable.
According to the utility provider, DSC1 accounts for just 11% of the total electricity value chain cost, far below the global benchmark of 30–33%. The company also cited the 74% depreciation of the cedi between 2022 and 2024, which it says has eroded the real value of its revenue by 45%.
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To address these challenges and improve customer service, ECG outlined a plan to channel the proposed revenue into critical infrastructure. Since 2022, it has invested US$408 million in substations, automation, and the rollout of over one million smart meters. The new tariff, it says, will allow the continuation of these projects.
With the adjustment, ECG projects significant service improvements, including a reduction in power outages. The System Average Interruption Duration Index (SAIDI) is expected to drop from 32.5 hours in 2024 to 19.2 hours in 2029, while the System Average Interruption Frequency Index (SAIFI) is forecast to fall from 16 to 9 within the same period. The company also targets reducing system losses from 27% to 22% and boosting revenue collection efficiency from 87% to above 90%.
To enhance accountability, ECG plans to deploy an additional 3 million smart meters, replace faulty meters at no extra cost, and improve voltage stability. Customers are also being encouraged to use the ECG Power App to purchase credit, check balances, and file complaints remotely.
The utility company stressed that a cost-reflective tariff is essential to end its reliance on government bailouts, freeing state resources for other priorities.
The PURC will now review the proposal, conduct public consultations, and make a final determination. Any changes will only take effect after official approval and announcement.
Story By: Afia Ohenewaa Akyerem