Ghana Water Company Demands Over 334% Increment
The Ghana Water Company and the Electricity Company of Ghana (ECG) are requesting a 334 percent increase and 148 percent increase respectively in tariffs.
The companies stated in a separate request to the Public Utilities Regulatory Commission (PURC) that the increase will assist their respective businesses stay viable.
ECG’s demand is based on Distribution Service Charges (DSC).
The upshot of ECG’s tariff plan for the next five years is a nearly 148 percent rise over the existing DSC1 in 2022, with an average annual increase of 7.6% 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.
