A huge row coupled with public insults have greeted the Electricity Company of Ghana (ECG) and Ghana Water Company over their demand to increase utility costs by over 130%.
In a separate proposal from the companies to Public Utilities Regulatory Commission (PURC), they indicated that the increment will help their respective companies stay afloat.
The result of ECG’s tariff proposal for the next five years shows an approximately 148% increase on the current DSC1 in 2022 and an average increase of 7.6% year on year from 2023 to 2026.
“The financial sustainability of the Electricity Company of Ghana is important as it impacts on the entire energy sector. With the huge investment needs facing the distribution industry over the next five years, it is expected that the proposed tariff increases would inevitably be approved to sustain efficient and reliable electricity service.
“Over the next five years, the DSC will need to increase consistently (average of 7.6%) to cover distribution costs. It is expected that the approved BGC would correspond with the commercial terms of PPAs (Power Plant Agreements),” portions of the proposal explained.
However, the Ranking Member for Energy Committee in Parliament, John Jinapor has questioned the increment.
“Why are they going back to 2019 and 2020? We cannot adjust prices for those years and go back again,” Mr. Jinapor quizzed on TV3.
He continued: “Moreover, ECG’s losses have increased from 22 per cent to 30 per cent. These inefficiencies cannot be passed onto consumers. The other thing that is leading to this proposed increase is the exchange rate, the fall of the cedi is due to the bad management of the economy. The ordinary Ghanaian must not suffer.”
