The Electricity Company of Ghana (ECG) says it has invested more than $408 million in the last three years to improve electricity supply and customer service.
According to the company, the depreciation of the Cedi by about 74 per cent since 2022 had reduced ECG’s revenue in dollar terms by almost half.
Speaking to The Ghanaian Times in an interview on Friday, the General Manager for External Communications at ECG, Dr Charles Nii Ayiku Ayiku, noted that the company had proposed an increase of its Distribution Service Charge (DSC1) from GHp19.0384 to GHp61.8028 per kilowatt-hour between 2025 and 2029.
According to him, the Distribution Service Charge 1(DSC1) was the portion of the electricity tariff allocated to ECG for its electricity distribution and retail services.
He therefore appealed to the Public Utilities Regulatory Commission (PURC) to approve a new tariff that would help sustain the gains made by the company.
Dr Ayiku pointed out that the proposed percentage increase in electricity bills or the new Average End User Tariff (AEUT) was about 25 per cent, which was different from the DSC1.
“Back in 2022, what we charged was equal to 2.27 cents per kilowatt-hour. Today, it is worth only 1.23 cents. This makes it difficult for ECG to maintain and expand the network without upward tariff adjustments,” Dr Ayiku said.
He added that the new tariff would help ECG recover the cost of its recent investments, including new substations in Bibiani, Obuasi, Koforidua, and Afari; the installation of over one million smart meters; and upgrades to digital systems such as the ECG Power App, which allowed customers to pay bills, buy credit, and make complaints online.
Dr Ayiku assured that customers would directly benefit through system reliability and stability, improved voltage, faster response times, and more convenience.
He said the company projected a fall in average outage hours by 41 per cent and a reduction in system losses from 27 per cent to 22 per cent by 2029.
“We are determined to build a stronger ECG that can deliver reliable service without depending on government bailouts. The proposed tariff is essential to achieving that goal,” Dr Ayiku said.
He emphasised that with PURC’s oversight, the company would ensure transparency and accountability in the use of customer funds, reinvesting them into projects that improve power supply for homes and businesses across the country.
BY BENJAMIN ARCTON-TETTEY
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