The Electricity Company of Ghana (ECG) has submitted a proposal to the Public Utilities Regulatory Commission (PURC) for a steep 225% increase in its Distribution Service Charge (DSC1).
The power company says the huge rise is necessary to avert financial collapse and ensure a reliable power supply.
The proposed new charge would see the DSC1 rise from its current GHp19.0384/kWh to GHp61.8028/kWh for the period 2025–2029.
The company, which serves over 73% of Ghana’s population and 4.87 million customers, argues that the current tariff is unsustainable.
According to ECG, the DSC1 constitutes only 11% of the total electricity value chain cost, far below the global benchmark of 30-33%.
This deficit, coupled with the Ghana cedi’s depreciation of about 74% between 2022 and 2024, has reduced the real value of the company’s revenue by 45%.
To counter these challenges and address the public’s persistent complaints about service quality, ECG has presented a detailed plan to invest the new revenue in critical infrastructure.
The utility revealed that it has already invested US$408 million since 2022 in new substations, automation, and the rollout of over one million smart meters.
