The Electricity Company of Ghana (ECG) has proposed a 225% increase in its Distribution Service Charge (DSC1), raising the rate from GHp19.0384/kWh to GHp61.8028/kWh for the period 2025–2029.
Submitting its proposal to the Public Utilities Regulatory Commission (PURC), ECG argued that the sharp rise is necessary to avert financial collapse, strengthen its balance sheet, and improve service delivery. The company currently serves over 73% of Ghana’s population—about 4.87 million customers.
ECG explained that the current tariff structure is unsustainable, with its share of the electricity value chain at just 11%, far below the global benchmark of 30–33%.
The utility also cited the Ghana cedi’s 74% depreciation between 2022 and 2024, which has eroded the real value of its revenues by about 45%.
To justify the increase, ECG outlined an investment plan aimed at reducing outages, cutting system losses, and boosting efficiency. Projections show that by 2029, power interruptions measured under the System Average Interruption Duration Index (SAIDI) could fall from 32.5 hours to 19.2 hours, while the System Average Interruption Frequency Index (SAIFI) would reduce from 16 to 9.
The company has already invested US$408 million since 2022 in substations, automation, and one million smart meters, and plans to roll out three million more meters if the new tariff is approved. ECG assured customers of better billing accuracy, free replacement of faulty meters, faster complaint resolution, and improved voltage supply.
The PURC is expected to hold consultations before making a final decision. Any new tariffs will only take effect after regulatory approval and public announcement.
