The Electricity Company of Ghana (ECG) has formally submitted a proposal to the Public Utilities Regulatory Commission (PURC) seeking a 225% increase in its Distribution Service Charge (DSC1).
Under the proposed adjustment, the DSC1 would rise from its current GHp19.0384/kWh to GHp61.8028/kWh for the period 2025–2029. ECG said the steep rise is necessary to prevent financial collapse and maintain a reliable electricity supply.
Serving over 73% of Ghana’s population and 4.87 million customers, the utility noted that the current DSC1 constitutes only 11% of the total electricity value chain cost, compared with the global benchmark of 30–33%. The company further highlighted that the Ghana cedi’s 74% depreciation between 2022 and 2024 has reduced its revenue’s real value by 45%.
To address these challenges, ECG outlined a plan to invest the additional revenue in critical infrastructure and improve service delivery. The utility has reportedly invested US$408 million since 2022 in new substations, system automation, and the installation of over one million smart meters.
The company projects that the new tariff will lead to measurable improvements in electricity reliability. System Average Interruption Duration Index (SAIDI) is expected to fall from 32.5 hours in 2024 to 19.2 hours by 2029, while System Average Interruption Frequency Index (SAIFI) would reduce from 16 to 9. Additionally, system losses are projected to decrease from 27% to 22%, and revenue collection efficiency is expected to rise from 87% to over 90%.
ECG also addressed concerns about billing accuracy and accountability. The utility plans to roll out approximately 3 million smart meters, ensure the replacement of faulty meters at no cost, and implement measures for faster complaint resolution and improved voltage supply. Customers are being encouraged to use the ECG Power App, which enables them to buy credit, check balances, and lodge complaints without visiting offices.
The company stressed that a cost-reflective tariff is essential to reduce reliance on government bailouts, freeing public funds for other national priorities.
The final decision on the proposed tariff rests with the PURC, which is required to review the proposal, conduct public consultations, and announce any approved changes before implementation.
