The Institute of Climate and Environmental Governance (ICEG) has opposed a proposal by the Electricity Company of Ghana (ECG) to increase its Distribution Service Charge (DSC) by 225% for the 2025–2029 regulatory period.
It has described the move as unfair and unsustainable.
ICEG said while it recognizes the need for reasonable upward adjustments to cover operational costs, ECG’s request to raise tariffs from GH₵19.04/kWh to GH₵61.8/kWh defies the principles of fairness, accountability, and sustainability.
The communique signed by ICEG’s Policy Lead on Climate Finance and Energy Transition, Kwesi Yamoah Abaidoo, argued that the proposed increment would impose heavy financial burdens on households and businesses already grappling with inflation, a weakening currency, and a rising cost of living.
“ECG’s failure to address the underlying causes of its inefficiencies, which manifest in high commercial and technical losses, weak governance structures, and wastage, should not be at the expense of the ordinary Ghanaian,” the Tuesday statement read.
ICEG further noted that ECG has not disclosed to the public the additional revenue gained from recent currency appreciation, even though the exchange rate was a key factor in determining tariffs.
The institute warned that the tariff hike could worsen economic conditions, especially for small businesses, and deepen the struggles of households that have not seen an increase in disposable income.
“Energy remains a critical commodity that affects livelihoods, healthcare delivery, and education. ECG’s proposal lacks social protection measures that safeguard the poor and lifeline consumers,” it added.
ICEG recommended that ECG consider performance-based regulation, public-private partnerships for grid upgrades, and aggressive loss-reduction programs as alternatives to burdening consumers. It also urged the Public Utilities Regulatory Commission (PURC) to rigorously scrutinize ECG’s proposal in line with the public interest and ensure that any review is tied to standard performance measures.
“Ghanaians deserve affordable, reliable, and sustainable power,” ICEG stressed.
SOURCE: Joy News
