The Electricity Company of Ghana (ECG) has proposed a 26.8% increase in electricity tariffs under its Multi-Year Tariff Order (MYTO) 2025–2030, citing the need to improve power reliability, strengthen financial performance, and enhance operational efficiency.
At a public hearing organized by the Public Utilities Regulatory Commission (PURC) in Accra on Tuesday, ECG explained that the upward adjustment is necessary to sustain its operations and ensure the delivery of reliable power to households and businesses.
The company’s presentation highlighted a 225% rise in the distribution service charge (DSC1) as the main driver of the new tariff framework. ECG explained that while generation and transmission tariffs remain constant, distribution costs have increased sharply to cover operational gaps.
Alongside this tariff restructuring, ECG is also proposing major policy reforms. These include collapsing tariff bands into just two categories: residential and non-residential, to simplify billing.
It also seeks to introduce a dedicated Public Lighting Tariff to cover the actual cost of streetlights. Additionally, ECG wants the service charge allocated exclusively to the company in order to fund meter replacement.
In terms of pricing policies, the company is proposing that the Bank of Ghana exchange rate be used in tariff determination to reflect real economic conditions. It also recommends that liquid fuel costs be included in the Weighted Average Cost of Gas.
Furthermore, ECG is advocating for the full pass-through of power generation costs, as well as coverage of the full reserve margin cost, pegged at 18 percent.
According to ECG, the proposed 26.8% adjustment is not only about cost recovery but also about delivering better service to consumers. The company projects that electricity reliability will improve significantly, with outage durations expected to reduce by 41 percent and outage frequency improving by 44 percent by the year 2029.
On the financial side, revenue collection efficiency is forecast to increase from the current 87 percent in 2024 to 96 percent by 2029.
ECG further anticipates financial growth, with sales expected to increase from GH₵18.5 billion in 2024 to GH₵28.3 billion in 2029, representing an average annual growth of 8 percent.
Operational efficiency is also expected to rise with the full implementation of an Enterprise Resource Planning (ERP) system and continuous digitization of work processes. System losses, which currently stand at 27.05 percent, are projected to decline to 22 percent by 2029.
