The Northern Electricity Distribution Company (NEDCo) has proposed a sharp upward review of its Distribution Service Charge, seeking approval from the Public Utilities Regulatory Commission (PURC) to increase tariffs by 171 percent in 2025.
NEDCo is requesting a charge of 153.03 pesewas per kilowatt-hour, up from the current 56.474 pesewas, in a move it says is necessary to restore financial sustainability and improve operational performance.
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Explaining the rationale at a public hearing in Accra on Tuesday, September 9, the company’s Director in Charge of Commercial, Hashim Iddrisu, said NEDCo operates across a vast geographical area with a relatively sparse customer base. He added that only 0.01 percent of its consumers fall under the special load tariff category, limiting its ability to generate adequate revenue.
According to NEDCo, its projected variable cost per unit for 2025 stands at 67.10 pesewas, while fixed costs are estimated at 85.92 pesewas per unit. Together, these add up to the proposed 153.03 pesewas. The company further noted that much of its capital expenditure—including network expansion, meters, and IT systems—is forex-denominated, worsening financial strain due to exchange rate pressures.
Mr. Iddrisu expressed optimism that the adjustment would boost NEDCo’s financial health, improve efficiency, and enhance service delivery.
“We’re proposing an increase of 171%. We expect that the new tariff that we’re proposing will have an impact on our performance, our collection rate will increase, and distribution losses will improve from 31% to 21%,” he stated.
The proposal comes on the heels of similar tariff increment requests by the Electricity Company of Ghana (ECG), the Ghana Grid Company (GRIDCo), and the Volta River Authority (VRA), all citing rising operational costs, forex pressures, and the need to sustain service delivery.
The PURC is expected to review NEDCo’s request, alongside those of other utility providers, before announcing its decision on the new tariff framework for the 2025–2030 regulatory period.