ECG Pushes for 239% Tariff Hike as PURC Reviews Proposal

The Electricity Company of Ghana (ECG) has requested a massive upward adjustment in electricity tariffs, proposing over a 200% increase in its Distribution Service Charge (DSC1) for the 2025–2029 regulatory period. According to ECG, the current tariff levels are unsustainable, covering only about 11% of the actual cost of distribution — far below the global benchmark of 30–33% (Daily Guide Network).

The utility argues that rising operational costs, cedi depreciation, inflation, and the high cost of spare parts have made a major increase unavoidable. It further maintains that additional revenue is needed to finance infrastructure upgrades and improve service delivery (Citi Newsroom).

The proposal has, however, triggered widespread criticism from civil society organizations, consumer groups, and policy think tanks. The Institute for Climate & Environmental Governance (ICEG) described the tariff adjustment as “unfair,” warning that it would worsen economic hardships for already struggling households (News Ghana).

Similarly, the International Perspective for Policy & Governance (IPPG) cautioned that such steep hikes could fuel inflation, cripple small businesses, and push more Ghanaians into poverty (IPPG Africa). Analysts have also questioned whether ECG has done enough to reduce losses and improve efficiency before demanding such drastic increases (ModernGhana).

Meanwhile, the Public Utilities Regulatory Commission (PURC) has emphasized that the proposal is still under review and no approval has been given yet (PURC Official). The Ministry of Energy has also urged calm, assuring that broad stakeholder consultations will take place before a final decision is made (GBC Ghana).

As the debate continues, the outcome of PURC’s review will be critical, with major implications for households, businesses, and the wider Ghanaian economy.