The Electricity Company of Ghana (ECG) says it has invested more than $408 million in the last three years to strengthen electricity supply and improve customer service, and is now seeking approval for a new tariff to sustain these improvements.
In a statement, Dr. Charles Nii Ayiku Ayiku, General Manager for External Communications at ECG, explained that the company had submitted a proposal to the Public Utilities Regulatory Commission (PURC) for a review of its Distribution Service Charge 1 (DSC1). According to him, the adjustment is necessary to offset the impact of currency depreciation and maintain the quality of service.
The company is asking to raise its DSC1 from GHp19.0384 to GHp61.8028 per kilowatt-hour for the period covering 2025 to 2029. The DSC1 represents the portion of the electricity tariff allocated specifically to ECG for distribution and retail services.
Dr. Ayiku said the adjustment was important because the Ghana cedi had lost about 74 per cent of its value since 2022, a development that had reduced ECG’s revenue in dollar terms by nearly half. He stressed that the company’s financial position has been significantly weakened by the depreciation, despite ongoing efforts to improve operations.
“Back in 2022, what we charged was equal to 2.27 US cents per kilowatt-hour. Today, it is worth only 1.23 cents. This makes it difficult for ECG to maintain and expand the network without upward tariff adjustments,” he stated.
The ECG spokesman clarified that while the DSC1 increase appears large, the proposed rise in the average electricity bills paid by customers — known as the Average End User Tariff (AEUT) — amounts to about 24 per cent. He emphasised that this is separate from the DSC1 calculation.
Dr. Ayiku said the new tariff, if approved, would allow ECG to recover the cost of recent capital projects. These include the construction of new substations in Bibiani, Obuasi, Koforidua, and Afari; the rollout of more than one million smart meters; and upgrades to its digital systems.
He noted that customers have already begun benefiting from some of these investments through improved system reliability and stability, better voltage supply, and easier access to services. The company’s digital tools, such as the ECG Power App, now allow customers to pay bills, purchase electricity credit, and lodge complaints online.
According to projections from ECG, the ongoing projects will deliver measurable improvements by 2029. The company expects average outage hours to drop by 41 per cent, while system losses are targeted to reduce from 27 per cent to 22 per cent.
Dr. Ayiku stressed that ECG’s goal is to become a stronger utility company capable of delivering reliable service without depending on government bailouts. He explained that sustained tariff adjustments are vital to achieving this independence and ensuring consistent reinvestment in the power network.
“We are determined to build a stronger ECG that can deliver reliable service without depending on government bailouts. The proposed tariff is essential to achieving that goal,” he said.
The company also assured customers that PURC’s oversight would guarantee transparency and accountability in the use of funds. ECG pledged that every cedi collected through the tariff will be reinvested into projects that directly improve power supply for homes, businesses, and industries across Ghana.
Energy experts say ECG’s request highlights the broader challenge of balancing consumer affordability with the rising cost of infrastructure in Ghana’s power sector. While consumers are often resistant to higher electricity bills, utilities argue that without cost-reflective tariffs, investments in expansion and service quality cannot be sustained.
The PURC is expected to carefully review ECG’s proposal in line with its mandate to protect consumers while ensuring the financial health of utility companies. Stakeholders will also be watching how the process unfolds, given the importance of stable power supply to Ghana’s economy and industrial growth.
If approved, the new tariff structure would take effect from 2025 and remain in place until 2029, providing ECG with a clear financial pathway to complete ongoing projects and deliver on its performance targets.
