VRA Seeks Tax Increase to Sustain Power Generation

The Volta River Authority (VRA) has submitted a proposal to the Public Utilities Regulatory Commission (PURC) requesting a 59% rise in its Bulk Generation Charge.

 This adjustment would raise the rate from 45.0892 to 71.8862 Ghana pesewas per kilowatt-hour.

VRA argues that the hike is essential to cover the full cost of electricity production and maintain consistent supply to distribution companies.

During a public hearing, VRA’s Senior Economic Analyst, Evans Somuah Mensah, emphasized that the Authority has long provided support to the national grid without adequate compensation.

 He stated that VRA should receive annual compensation of $30.49 million for its Akosombo operations, with a smaller amount allocated to the Kpone Thermal Plant.

Other power distributors have also submitted tariff proposals: ECG is asking for 55.7671 pesewas/kWh, NEDCo wants 92.7333 pesewas/kWh, and EPCL has proposed the highest rate at 147.1775 pesewas/kWh.

Meanwhile, ECG is pursuing a separate increase in its Distribution Service Charge, aiming for a 224% rise over the 2025–2029 period. The company cites inflation, exchange rate fluctuations, and rising operational costs as reasons for the adjustment, projecting an average annual revenue requirement of GHS 9.1 billion.

If approved, these proposals could significantly impact electricity costs for consumers and businesses, sparking further debate on affordability and the future of Ghana’s energy sector.

Jasmine Adjei
Author: Jasmine Adjei

Development journalist

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