ECG Justifies 224% Tariff Increase Proposal

The Electricity Company of Ghana (ECG) has defended its proposal for a 224% ECG tariff increase. The company says the adjustment is necessary over the 2025–2029 period. ECG is seeking to raise the Distribution Service Charge (DST1) from 19.0875 pesewas per kilowatt-hour to 61.8028 pesewas per kilowatt-hour. The company maintains its financial viability has been poor. Therefore, this adjustment becomes critical. It will help them restore operations, sustain distribution services, and fully recover investment costs.

Moses Okley, General Manager of Financial Planning at ECG, provided a detailed justification. He stressed that the increase is critical. It will ensure reliable power delivery and long-term stability in the distribution network. Okley noted the company’s ambitious investment and growth plans. For instance, they plan to deploy 3 million meters over the next three years. They have projected sales to increase by 18% with an annual growth rate of 8%. The company also targets a key improvement in revenue collection.

In 2024, revenue collection stood at 87%. The company plans to increase revenue collection by 2% year-on-year for the next five years. Ultimately, Okley explained, the DST1 needs to increase from 19 pesewas to 61 pesewas. This amounts to a 224% rise. Consequently, the company believes this significant ECG tariff increase will provide the resources it needs to modernize its network. It also plans to improve efficiency, reduce losses, and guarantee a more consistent power supply to all consumers across the country. These future projects, they claim, require immediate and substantial investment.