ECG Seeks 224% Increase in Distribution Service Charge Over 2025–2030 Tariff Period

At a stakeholder engagement with the Public Utilities Regulatory Commission (PURC) on Monday, September 8, 2025, ECG recommended raising the DSC from the current 19.0875 pesewas per kilowatt-hour to 61.8028 pesewas.

According to ECG, the proposed increment is driven by rising inflation, foreign exchange volatility, high interest rates, and the need to recover the full cost of investment in infrastructure. The company projects average annual revenue requirements of GHS 9.1 billion over the five-year period, with operational costs, human resource expenses, depreciation, capital recovery, and tax obligations expected to climb steadily.

To support the adjustment, ECG outlined a series of structural reforms to the tariff system, including:• Collapsing residential tariff bands into two categories, and non-residential tariffs into one, to simplify billing.• Eliminating cross-subsidisation to ensure fair cost allocation.• Introducing a Net Metering Tariff Structure for renewable energy users.• Applying the Bank of Ghana exchange rate for tariff determination to address forex risks.• Allocating service charges exclusively to ECG for meter maintenance and replacement.• Introducing a dedicated public lighting tariff to resolve funding gaps.• Ensuring full recovery of investment costs for completed and ongoing projects.• Including 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.• Shifting from quarterly to monthly automatic tariff adjustments.

In its projections, ECG anticipates sourcing 22,784 GWh of power from Independent Power Producers (IPPs) and the Volta River Authority in 2025, with 21,478 GWh transmitted after accounting for system losses. Losses, currently at 27.68 percent in 2024, are expected to decline by 1 percent annually through the period.

The utility further forecasts bulk generation costs rising from 253.78 GHp/kWh in 2025 to 302.73 GHp/kWh by 2029. With reserve margin costs factored in, the figure could rise to between 313.02 GHp/kWh and 359.09 GHp/kWh.

The PURC is reviewing the proposals as part of its multi-year tariff determination process for 2025–2030, balancing the financial sustainability of utilities with affordability for consumers.