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The Electricity Company of Ghana (ECG) has proposed a 225% increase in its Distribution Service Charge (DSC1), warning that the adjustment is necessary to avert financial collapse and improve service delivery.
In its submission to the Public Utilities Regulatory Commission (PURC), ECG requested that the DSC1 be raised from GH₵0.190384/kWh to GH₵0.618028/kWh for the period 2025–2029.
The utility, which serves over 73% of Ghana’s population and 4.87 million customers, argued that its current tariff structure is unsustainable. It noted that while the DSC1 accounts for just 11% of the electricity value chain cost, the global benchmark is between 30% and 33%.
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ECG said the financial strain has been worsened by the cedi’s depreciation of about 74% between 2022 and 2024, which eroded the real value of its revenue by 45%.
To address these challenges, the company pledged to channel additional funds into critical infrastructure. Since 2022, ECG has said it has already invested US$408 million in substations, automation systems, and the rollout of over one million smart meters.
The proposed tariff increase, it added, would allow ECG to:
- Reduce the System Average Interruption Duration Index (SAIDI) from 32.5 hours in 2024 to 19.2 hours by 2029.
- Cut the System Average Interruption Frequency Index (SAIFI) from 16 to 9.
- Lower system losses from 27% to 22%.
- Improve revenue collection efficiency from 87% to above 90%.
On accountability, ECG assured customers that about 3 million additional smart meters will be deployed to enhance billing accuracy and curb electricity theft. Faulty meters will be replaced free of charge, while digital platforms like the ECG Power App will expand access to bill payments and complaints handling.
The utility further stressed that a cost-reflective tariff is crucial to ending its reliance on government bailouts, enabling state funds to be redirected to other national priorities.
The PURC is now expected to review the proposal and hold public consultations before any decision is made. Any new tariffs will only take effect after regulatory approval and a formal announcement.
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