The Centre for Environmental Management and Sustainable Energy (CEMSE) has cautioned that the Electricity Company of Ghana’s (ECG) proposed 225% tariff increase could cripple local industries, discourage investment, and deepen household poverty if approved.
CEMSE’s Executive Director, Nsia, in an interview on Morning Starr with Naa Dedei Tettey on Tuesday, September 9, stressed that energy affordability must remain central to Ghana’s electricity policy.
“As a government and as a policy, we must be guided by the philosophy of affordability of electricity prices. Because when electricity prices are very affordable, it helps expand our industries and improve industrial growth, whilst alleviating a lot of people from poverty, especially what we call the energy poverty.”
He argued that ECG’s inefficiencies—not low tariffs—are the real cause of its financial troubles.
“The reason why these utilities come to Ghanaians for higher tariffs is because of inefficiency and certain fraudulent procurements, duplication of jobs by employees, and high administrative costs. These are their reasons for tariff increments, not because we are failing to pay cost-reflective rates.”
Nsia further warned that the proposed hikes, projected through 2030, would unfairly shift ECG’s inefficiencies onto consumers.
“We at CEMSE and other CSOs will not allow this 225 percent increment, because there’s no justification. I think the arguments are flawed. And maybe when the time comes that we engage PURC, we’ll make our issues clear.”
His comments follow ECG’s proposal to the Public Utilities Regulatory Commission (PURC) for a sharp upward review of electricity distribution charges.
The utility is seeking an average 224% increase in the Distribution Service Charge (DSC1) over the 2025–2029 tariff period.
Under the plan, charges would rise from the current GHp19.0875/kWh to an average of GHp61.8028/kWh.
ECG argues that the adjustment is critical to restoring financial viability and sustaining operations, citing inflation, exchange rate volatility, interest rates, and the need for full cost recovery on investments as key drivers.
ECG projects annual revenue requirements will average GHS 9.1 billion over the five years, driven by rising operational costs, staff expenses, depreciation, capital recovery payments, and taxes.
Source: Starrfm.com.gh
