The Electricity Company of Ghana (ECG) has assured customers that its recent request for an adjustment in the distribution service charge will not translate into higher electricity bills.
Briefing the Energy Committee of Parliament, the Acting Managing Director of ECG, Ing. Julius Kpekpena, clarified that the company is not seeking a 220 per cent increase in consumer tariffs as has been speculated.
“ECG has asked for a certain percentage increase in the distribution service charge, not in how much customers will pay us. What we are asking for can even be done without any corresponding increase in the end-user tariff,” he said.
He explained that the current tariff structure is distorted, with only 4 per cent of revenue allocated to ECG for distribution, instead of the 40 per cent required to reflect actual costs.
“We are appealing to the PURC to correct that distortion. The distribution service charge can go up without necessarily increasing the end-user tariff,” Kpekpena told lawmakers.
The assurance comes amid public concern following reports of a potential 225 per cent hike in electricity tariffs, which the ECG has dismissed as misleading.
ECG stated that the huge rise is necessary to avert financial collapse and ensure a reliable power supply.
The proposed new charge would see the DSC1 rise from its current GHp19.0384/kWh to GHp61.8028/kWh for the period 2025–2029.
The company, which serves over 73 per cent of Ghana’s population and 4.87 million customers, argues that the current tariff is unsustainable.
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