The Electricity Company of Ghana (ECG) wants tariffs to be increased by 224% in the Distribution Service Charge (DSC1) over the 2025–2029 tariff period.
The ECG defended its proposal for a 224% tariff increase, stressing that the adjustment—from GHp19.0875/kWh to an average of GHp61.8028/kWh—is essential to restoring financial stability and guaranteeing sustainable service delivery.
The company attributed the request to persistent economic pressures, including inflation, exchange rate fluctuations, rising interest costs, and the need to fully recover investment outlays.
According to ECG’s five-year financial outlook, annual revenue requirements will average GHS 9.1 billion, driven by climbing operational expenses, human resource costs, depreciation, capital recovery obligations, and taxes. The utility argues that only a significant tariff overhaul can meet these rising commitments.
In addition to the headline tariff increase, ECG is advocating for major reforms to the existing pricing structure. The proposals include:
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Reducing residential tariff bands to two categories and consolidating non-residential charges into a single band to simplify billing.
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Ending cross-subsidisation to ensure fair cost distribution.
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Introducing a net metering tariff for customers with renewable energy systems, aligned with national policy.
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Using the Bank of Ghana exchange rate for tariff setting to curb forex-related risks.
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Allocating service charges solely to ECG for meter upkeep and replacement.
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Establishing a dedicated public lighting tariff to address shortfalls in funding streetlights.
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Ensuring full recovery of investments in completed and ongoing projects.
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Including liquid fuel costs during plant shutdowns in the Weighted Average Cost of Fuel (WACOF).
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Factoring an 18% reserve margin into tariffs.
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Shifting from quarterly to monthly automatic tariff adjustments.
On the supply side, ECG projects energy procurement of 22,784 GWh from the Volta River Authority and Independent Power Producers in 2025, with 21,478 GWh expected to be transmitted after accounting for losses. System losses, which stood at 27.68% in 2024, are targeted to decline by one percentage point each year.
The utility further estimates that bulk generation costs will climb from 253.78 GHp/kWh in 2025 to 302.73 GHp/kWh in 2029. When reserve margins are included, the projected cost ranges between 313.02 GHp/kWh and 359.09 GHp/kWh.
If endorsed by the Public Utilities Regulatory Commission (PURC), the plan would represent one of the most substantial electricity tariff adjustments in Ghana’s history—a move ECG insists is crucial to preserving power reliability and attracting future investment into the sector.
