The Institute of Climate and Environmental Governance (ICEG) has strongly rejected a proposal by the Electricity Company of Ghana (ECG) to raise its Distribution Service Charge (DSC) by 225% for the 2025–2029 regulatory period, describing it as unjustifiable and detrimental to consumers.
According to ICEG, while modest upward adjustments may be necessary to offset operational costs, ECG’s request to increase tariffs from GH₵19.04/kWh to GH₵61.8/kWh undermines principles of fairness, accountability, and sustainability.
In a statement issued Tuesday and signed by ICEG’s Policy Lead on Climate Finance and Energy Transition, Kwesi Yamoah Abaidoo, the institute warned that such a sharp increment would worsen the economic hardship of households and businesses already struggling with inflation, a depreciating cedi, and high living costs.
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“ECG’s failure to address the underlying causes of its inefficiencies, which manifest in high commercial and technical losses, weak governance structures, and wastage, should not be at the expense of the ordinary Ghanaian,” the statement said.
ICEG also criticized ECG for failing to disclose how much additional revenue it has gained from recent currency appreciation, even though exchange rate fluctuations remain central in tariff determinations. It cautioned that the proposed hike could erode disposable incomes, cripple small businesses, and intensify economic pressures.
Highlighting electricity as an essential commodity that underpins livelihoods, healthcare, and education, ICEG noted that ECG’s plan does not include social protection measures to shield poor households or lifeline consumers.
As alternatives, the institute urged ECG to pursue performance-based regulation, public-private partnerships for grid investment, and aggressive loss-reduction programs rather than pushing costs onto consumers. It also called on the Public Utilities Regulatory Commission (PURC) to thoroughly review ECG’s proposal and tie any approved tariff adjustments to strict performance benchmarks.
“Ghanaians deserve affordable, reliable, and sustainable power,” ICEG stressed.
Story By: Afia Ohenewaa Akyerem