The Centre for Environmental Management and Sustainable Energy (CEMSE), a policy think tank, has rejected the Electricity Company of Ghana’s (ECG) proposal to raise its Distribution Service Charge (DSC1) by 224%, describing it as unjustified and potentially harmful to the economy.

Speaking on Accra 100.5 FM’s mid-day news, CEMSE’s Executive Director, Benjamin Nsiah, argued that ECG’s operational inefficiencies and weak organisational structure are at the heart of its financial challenges.

“If ECG can address its inefficiencies and restructure its operations, there would be no need for such an astronomical increment,” he said.

Mr. Nsiah warned that approving the proposed increase would “cripple industries and deepen poverty,” forecasting that ECG could push for additional quarterly hikes of up to 20% in 2026 if current trends continue.

ECG has requested that the Public Utilities Regulatory Commission (PURC) approve a jump in its Distribution Service Charge from GH₵0.190875/kWh to an average of GH₵0.618028/kWh for the 2025–2029 tariff period — representing a 224% increase.

The utility says the hike is essential to restore financial stability, citing inflation, exchange rate pressures, rising interest costs, higher staff expenses, depreciation, and tax obligations.

ECG projects annual revenue requirements of GHS 9.1 billion over the next five years to cover these costs.

Other utilities have also submitted tariff proposals:

ECG: 55.7671 pesewas/kWh

NEDCo: 92.7333 pesewas/kWh

Enclave Power Company Ltd (EPCL): 147.1775 pesewas/kWh (highest request).

If approved, the tariff hikes could significantly raise electricity bills for households and businesses, fueling ongoing debate over affordability, cost recovery, and the sustainability of Ghana’s power sector.