The Electricity Company of Ghana (ECG) has pleased with the Public Utilities Regulatory Commission (PURC) to approve a dramatic 225% increase in its Distribution Service Charge (DSC1), raising it from GHp19.0384/kWh to GHp61.8028/kWh between 2025 and 2029.
ECG says this move is crucial to avoid financial collapse and to maintain a stable electricity supply.
Serving nearly three-quarters of Ghana’s population, ECG argues that the current tariff structure is unsustainable. The DSC1 currently covers just 11% of the total cost of electricity distribution far below the global standard of 30–33%. Combined with a 74% depreciation of the Ghanaian cedi from 2022 to 2024, the company’s revenue has lost nearly half its value.
To address these challenges, ECG plans to channel the additional funds into infrastructure upgrades. Since 2022, it has already invested $408 million in substations, automation, and smart meters.
The proposed increase would help expand these efforts, aiming to reduce power outages and improve service reliability.
Projections show that average outage duration (SAIDI) could drop from 32.5 hours in 2024 to 19.2 hours by 2029, while outage frequency (SAIFI) may fall from 16 to 9. ECG also expects to cut system losses from 27% to 22% and boost revenue collection efficiency above 90%.
To enhance transparency and customer trust, ECG plans to deploy 3 million smart meters, replace faulty ones at no cost, and improve voltage consistency. It’s also promoting its ECG Power App for digital payments and customer service.
Ultimately, ECG hopes that a cost-reflective tariff will reduce its reliance on government bailouts, freeing up public funds for other national priorities. The PURC will review the proposal and hold public consultations before any changes are finalized.
Author: Jasmine Adjei
Development journalist
