The Institute of Climate and Environmental Governance (ICEG) has expressed strong opposition to the Electricity Company of Ghana’s (ECG) request to increase its Distribution Service Charge (DSC) by 225 percent for the regulatory period from 2025 to 2029. ICEG described the proposal as unjustifiable and harmful to the public.
In a press release dated September 9, 2025, ICEG stated that it supports reasonable adjustments to help utilities recover their operational costs. However, it believes that ECG’s plan to increase the DSC from GHp19.04/kWh to GHp61.80/kWh is clearly contrary to the principles of fairness, accountability, and sustainability. The Institute argued that this proposed increase would place a severe financial burden on households and businesses, which are already facing the challenges of inflation, a depreciating currency, and rising living costs.
ICEG also criticised ECG for failing to inform the public about the additional revenue gained this year from currency appreciation. The Institute observed that the exchange rate was a key factor in the recent electricity tariff computation, yet ECG has not disclosed how this has impacted its finances.
According to ICEG, ECG’s operational inefficiencies remain unaddressed and should not be transferred to consumers through higher charges. These inefficiencies, the Institute said, include:
• High commercial and technical losses
• Weak governance structures
• Wastage in operations
ICEG stressed that “requesting such an increment will yield no results until these inefficiencies are addressed.” It added that relying heavily on tariff adjustments without considering alternative ways of raising revenue shows a lack of strategic direction at ECG.
The Institute highlighted that energy is a critical commodity that directly affects livelihoods, healthcare delivery, and education. It warned that ECG’s proposal lacks social protection measures to safeguard the poor and lifeline consumers.
ICEG further cautioned that “a 225 percent upward adjustment will further impact small-scale businesses and may negatively affect economic growth,” especially since households have not seen an increase in disposable income.
ICEG outlined several measures ECG should pursue instead of imposing such a heavy tariff burden on consumers. These include:
• Performance-based regulation to tie tariff reviews to efficiency and service delivery outcomes.
• Public-private partnerships to finance and upgrade grid infrastructure.
• Aggressive loss-reduction programs to cut down on both technical and commercial losses.
The Institute has urged the Public Utilities Regulatory Commission (PURC) to thoroughly review the Electricity Company of Ghana’s (ECG) proposal, prioritising the broader public interest. It emphasized that any review should focus on standard performance measures rather than implementing blanket tariff increases.
The Institute for Energy Governance (ICEG) reaffirmed its commitment to advocating for affordable, reliable, and sustainable energy for Ghanaians. They stressed that until ECG addresses its structural inefficiencies and adopts innovative reforms, passing costs onto consumers is both unjustifiable and unsustainable. The statement was signed by Kwesi Yamoah Abaidoo, the Policy Lead for Climate Finance and Energy Transition at ICEG.
Source: Starrfm.com.gh
