The Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo) have 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, while 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.”
ECG justifies proposal for 224% tariff increase
Meanwhile, ECG has been defending its proposal to increase electricity tariffs by 224 percent over the 2025–2029 period.
The company is seeking to raise the Distribution Service Charge (DST1) from 19.0875 pesewas per kilowatt-hour to 61.8028 pesewas per kilowatt-hour.
According to ECG, the adjustment is necessary to restore the financial viability of its operations, sustain distribution services, and fully recover investment costs.
Moses Okley, General Manager of Financial Planning at ECG, stressed that the increase is critical to ensuring reliable power delivery and long-term stability in the distribution network.
“And by the project that is approved for us, we plan to deploy 3 million meters in the next 3 years. In terms of financial growth, sales are projected to increase by 18% with an annual growth rate of 8%. One key improvement that the company has planned is an increase in revenue collection.
“In 2024, revenue collection was 87%. The company planned to increase revenue collection by 2% year-on-year for the next 5 years. Finally, ECG propose that the DST1 is increased from 19 pesewas to 61 pesewas which is an increase of 224%,” he said.
