The Electricity Company of Ghana (ECG) has submitted a proposal to the Public Utilities Regulatory Commission (PURC) seeking a 225% increase in its Distribution Service Charge (DSC1).
The company argues that the adjustment is critical to preventing financial collapse and ensuring a stable power supply. If approved, the DSC1 would rise from the current GHp19.0384/kWh to GHp61.8028/kWh for the period 2025–2029.
ECG, which provides electricity to more than 73% of Ghanaians and serves 4.87 million customers, maintains that the present tariff is unsustainable. It explained that DSC1 currently represents only 11% of the electricity value chain cost, far below the international benchmark of 30–33%.
The utility further cited the sharp depreciation of the cedi about 74% between 2022 and 2024 which has eroded the real value of its revenue by 45%.
To address these challenges and respond to ongoing customer concerns about service quality, ECG says additional revenue will be invested in modernising infrastructure. The company disclosed that it has already spent US$408 million since 2022 on substations, automation, and the installation of over one million smart meters.
With the proposed tariff, ECG projects significant improvements in reliability. The System Average Interruption Duration Index (SAIDI) is expected to decline from 32.5 hours in 2024 to 19.2 hours by 2029, while the System Average Interruption Frequency Index (SAIFI) is forecast to drop from 16 to 9 within the same period.
System losses are also projected to reduce from 27% to 22%, while revenue collection efficiency is expected to rise from 87% to over 90%.
To boost accountability, ECG plans to deploy an additional 3 million smart meters for accurate billing and anti-theft measures. It has also assured customers that faulty meters will be replaced free of charge, while new investments will enhance voltage stability and speed up complaint resolution.
The company is also promoting its digital platform, the ECG Power App, which allows customers to purchase credit, check balances, and file complaints remotely.
According to ECG, implementing a cost-reflective tariff would reduce its reliance on government bailouts, enabling public funds to be channelled into other national priorities.
The PURC is expected to review the proposal, hold stakeholder consultations, and make a final determination before any new tariffs take effect.
