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.<\/p>\n
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).<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Speaking at a public hearing in Accra on Tuesday, September 9, Hashim Iddrisu, NEDCo\u2019s Director in Charge of Commercial, explained:<\/p>\n
\u201cWe\u2019re proposing that the current lifeline tariff be discontinued. We\u2019re also recommending that a street tariff be provided for residential customers so that they are no longer in brackets.<\/p>\n
\u201cWe also propose an introduction of street lights tariff to recover the cost associated with the provision of public lighting.\u201d<\/p>\n
ECG justifies proposal for 224% tariff increase<\/p>\n
Meanwhile, ECG has been defending its proposal to increase electricity tariffs by 224 percent over the 2025\u20132029 period.<\/p>\n
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.<\/p>\n
According to ECG, the adjustment is necessary to restore the financial viability of its operations, sustain distribution services, and fully recover investment costs.<\/p>\n
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.<\/p>\n
\u201cAnd 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.<\/p>\n
\u201cIn 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%,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"
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<\/p>\n","protected":false},"author":3,"featured_media":8760,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[2443,2629,2311],"class_list":{"0":"post-8759","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-minerals-and-energy","8":"tag-electricity-company-of-ghana-ecg","9":"tag-nedc","10":"tag-public-utilities-regulatory-commission-purc"},"yoast_head":"\n