The Volta River Authority (VRA) has submitted a request to the Public Utilities Regulatory Commission (PURC) for a significant increase in its Bulk Generation Charge (BGC), seeking a 59 percent hike. The VRA is asking for approval to raise the tariff from 45.0892 Ghana pesewas per kilowatt-hour to 71.8862 pesewas per kilowatt-hour. The Authority contends that this increase is essential to fully recover the costs of power generation that it supplies to distribution companies (DISCOs). According to the VRA, without this adjustment, it will become increasingly difficult to maintain reliable electricity generation and meet its operational and financial obligations.
The submission also included the tariff requests from other distribution utilities. The Electricity Company of Ghana (ECG) has proposed a charge of 55.7671 pesewas per kilowatt-hour, while the Northern Electricity Distribution Company (NEDCo) is seeking 92.7333 pesewas per kilowatt-hour. The Enclave Power Company Limited (EPCL) has submitted the highest request, proposing a charge of 147.1775 pesewas per kilowatt-hour.
If approved, the proposed hikes could substantially raise electricity tariffs for households and businesses, deepening public debate over affordability, cost recovery, and the sustainability of Ghana’s power sector. The VRA’s request comes on the heels of ECG’s separate proposal for a steep upward review of distribution charges. ECG is seeking an average 224 percent increase in its Distribution Service Charge (DSC1) over the 2025–2029 tariff period.
Under its plan, the charge would rise from the current GHp19.0875/kWh to an average of GHp61.8028/kWh. ECG argues that the review is vital to restoring financial stability and ensuring sustainable service delivery. The utility cites rising inflation, foreign exchange volatility, interest rates, and the need for full cost recovery on investments as key justifications.
ECG’s projections show its annual revenue requirements averaging GHS 9.1 billion over the next five years, with operational costs, staff expenses, depreciation, capital recovery, and tax obligations expected to rise steadily.
Source: Emmanuel Oppong
