The Volta River Authority (VRA) has proposed a 59 percent increase in bulk generation charges as part of the ongoing Public Utilities Regulatory Commission (PURC) public hearing on the Multi-Year Tariff Order for 2025 to 2030.
At the hearing held at the Ghana Shippers Authority in Accra on Wednesday, VRA requested that its bulk generation charge be raised from 45.0892 pesewas per kilowatt hour (GHp/kWh) to 71.8362 pesewas per kilowatt hour.
They explained that the adjustment is necessary to enable the Authority to recover the cost of power generation supplied to distribution companies.
The VRA also made a case for the inclusion of mini-grid operations in the tariff structure. According to them, more than 85 percent of customers served by these mini grids, particularly in island and deprived communities, fall within the lifeline category of residential consumers and are unable to bear the full cost of supply.
VRA argued that a cross-subsidy mechanism is needed to sustain the high cost of operating the mini-grids, and called on the Ministry of Energy, PURC, and the Energy Commission to establish a cost recovery framework.
The PURC’s public hearing is part of its regulatory process to engage stakeholders and gather input before finalising tariffs for the next five years.
The Commission is expected to consider the proposals of utility providers alongside concerns of consumer groups before making a determination.
