Ghanaians will be faced with more woes if the Electricity Company of Ghana (ECG) proposed 224 per cent increase in tariff hike is approved.
The Electricity Company of Ghana (ECG) has proposed a 225% increase in its Distribution Service Charge for the 2025 to 2029 tariff period.
The power distribution company is seeking an adjustment from the current GHp19.0875/kWh to an average of GHp61.8028/kWh to restore the company’s financial stability.
Their proposal notes the rising inflation, foreign exchange volatility, and interest rates.
According to ECG projections, its annual revenue requirements are rising steadily, averaging GHS 9.1 billion across the five years.
ECG’s significant tariff review has been necessitated as they expect its operational costs, human resource expenses, depreciation, capital recovery payments, and tax obligations will continue to climb.
The power distribution company, according to reports, is also recommending a wide-ranging set of reforms to the tariff structure, which include the following,
“Collapse of tariff bands to two categories for residential customers and one for non-residential users, aimed at simplifying billing. Elimination of cross-subsidisation to ensure equitable allocation of costs and non-discriminatory tariffs.
Net Metering Tariff Structure for customers with grid-connected renewable energy, in line with the government’s renewable energy policy. Adoption of the Bank of Ghana exchange rate for tariff determination to cushion against forex volatility.
Service charge allocation exclusively to ECG for meter maintenance and replacement. Introduction of a public lighting tariff to resolve funding shortfalls for street lighting.
Full recovery of investment costs for completed and ongoing projects. Inclusion of liquid fuel costs during plant shutdowns in the Weighted Average Cost of Fuel (WACOF).
Factoring in the full reserve margin cost of 18 per cent into tariffs. Monthly automatic tariff adjustments instead of the current quarterly system”, the recommendations added.
ECG proposes a 225% increase in its Distribution Service Charge for the 2025 to 2029 tariff period if approved by the Public Utilities Regulatory Commission (PURC), which would mark one of the steepest adjustments in Ghana’s electricity pricing history, putting more burden on Ghanaian households.
Meanwhile, the Public Utilities Regulatory Commission (PURC) in April 2025 announced an adjustment in electricity and water tariffs.
The PURC, in a statement, announced that electricity and water tariffs will be increased by an average of 14.75%, while water tariffs will go up by 4.02%.
According to the statement, the new tariffs are set to take effect on May 3, 2025.
“The commission, in their decision today at 6 pm, reviewed upward the average end-user tariff for electricity by 14.75 per cent and also 4.02 per cent upward for water supply across board for all categories of consumers,” he stated.
The PURC recognised that the adjustments were due to the exchange rate between the Ghanaian cedi and the US dollar, inflation projections, fuel costs, and the current hydro-thermal generation mix.
PURC, in a statement issued on Friday, April 11, revealed that the commission needs to recover 50% of the outstanding revenue amounting to GHS976 million from previous quarters in 2024
The statement added that the remaining 50% will be spread over subsequent quarters in 2025.
Meanwhile, the Minister for Energy and Green Transition, John Jinapor, has stated that the government has no plans to sell the Electricity Company of Ghana (ECG).
According to the Energy Minister, the government is seeking to reform the Electricity Company of Ghana (ECG) with private sector participation.
He added that ECG will remain publicly owned and that any private engagement is aimed solely at improving financial and service delivery.
Speaking at the Government Accountability Series on Wednesday, July 16, 2025, John Jinapor stated, “To ensure that we increase revenue and improve efficiency, the cabinet has approved private sector participation in ECG’s distribution network”.
“Let me put it on record again that we are not selling ECG. What we are seeking to do is involve the private sector, particularly in the billing and collection segment.”
“This is an investment opportunity for you. Get involved and help us bring about the change we want,” he added.
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ECG proposes 225% increase in its Distribution Service Charge for 2025 to 2029 tariff period; requests charge is raised from 19 pesewas to 61.8 pesewas per kilowatt-hour#JoyNews pic.twitter.com/PNIM0TQgDD
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