While the m Electricity Company of Ghana (ECG) is requesting for a 224% tariff increment, the Northern Electricity Distribution Company (NEDCo) have also proposed the introduction of a dedicated tariff to finance the provision and maintenance of street lighting nationwide.
The proposal comes at a time when both utilities are already seeking significant tariff hikes in their submissions to the Public Utilities Regulatory Commission (PURC).
ECG is defending a proposed 224 percent adjustment in its distribution charge, NEDCo is pushing for a 171 percent increase to cover what it describes as unsustainable operational costs.
In addition, NEDCo has called for the removal of the lifeline tariff bracket, which cushions low-income households. The company argues that the current arrangement is no longer viable due to its high fixed and variable costs.
The two utilities maintain that introducing a street lighting tariff will guarantee a reliable funding source for the installation and upkeep of public lights, which they say are critical for safety and economic activity across urban and rural communities.
Speaking at a public hearing in Accra on Tuesday, September 9, Hashim Iddrisu, NEDCo’s Director in Charge of Commercial, explained:
“We’re proposing that the current lifeline tariff be discontinued. We’re also recommending that a street tariff be provided for residential customers so that they are no longer in brackets.
“We also propose an introduction of street lights tariff to recover the cost associated with the provision of public lighting.”