ECG, NEDCo Propose New Street Lighting Tariff for Ghanaians

The Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo) have proposed a new street lighting tariff. This dedicated tariff will finance the provision and maintenance of public lights across Ghana. The proposal comes while both utilities are already seeking significant tariff hikes from the Public Utilities Regulatory Commission (PURC). ECG defends a proposed 224% adjustment in its distribution charge. Meanwhile, NEDCo pushes for a 171% increase. The company says it needs this to cover what it describes as unsustainable operational costs.

In addition, NEDCo called for the removal of the lifeline tariff bracket. The lifeline tariff currently cushions low-income households. The company argues that its high fixed and variable costs make the current arrangement unviable. The utilities’ high debt levels also necessitate these adjustments. NEDCo has long complained about revenue shortfalls and their inability to recover costs fully, which they attribute to an outdated tariff structure and non-payment from customers, especially government agencies.

The two utilities maintain that introducing a specific tariff for streetlights will guarantee a reliable funding source for the installation and upkeep of public lighting systems. They say these lights are critical for safety and economic activity across urban and rural communities. Hashim Iddrisu, NEDCo’s Director in Charge of Commercial, explained their position at a public hearing in Accra. “We’re proposing that the current lifeline tariff be discontinued,” he stated. “We’re also recommending that a street tariff be provided for residential customers so that they are no longer in brackets. We also propose an introduction of street lights tariff to recover the cost associated with the provision of public lighting.” This proposal forms a key part of the utilities’ long-term plan to ensure their financial sustainability and improve service delivery.

Source: CitiNewsroom