ASEC rejects ECG’s proposed 225% tariff hike, warns of consumer burden

The Africa Sustainable Energy Centre (ASEC) is unhappy with  the Electricity Company of Ghana’s (ECG) proposal to raise electricity tariffs by 225 percent, describing the move as unjustified and likely to impose severe hardship on households and businesses.

While tariff reviews are permitted under Public Utilities Regulatory Commission (PURC) rules, ASEC argued that such adjustments must be transparent, fair and evidence-based—not a way for ECG to shift the cost of inefficiencies onto consumers.

The centre criticised ECG for what it described as persistent operational failures, including weak revenue mobilisation, outdated collection methods and limited innovation. It maintained that customers who pay their bills diligently should not be penalised for the utility’s inefficiencies and debts.

ASEC further demanded clarity on several outstanding issues before any review is considered, including the fate of missing ECG containers, progress on debt recovery from government institutions and the utilisation of the GH¢1 levy.

“Pouring money into ECG without reform is like pouring water into a torn sack,” the statement signed by ASEC’s Director of Research and Innovation, Dr. Elvis Twumasi, said, adding that any tariff adjustment must be tied to measurable performance improvements rather than arbitrary increases.

The energy think-tank also criticised PURC, which is mandated to protect public interest, for what it described as a tendency to approve tariff hikes without sufficient scrutiny. ASEC questioned whether adequate research had been undertaken on consumers’ income levels, electricity spending as a share of household budgets and usage patterns across customer groups.

ASEC warned that continuous tariff hikes, often granted despite erratic supply, have deepened economic pressure on households and undermined business competitiveness. It reiterated that addressing ECG’s financial challenges requires accountability, innovation and structural reforms, not “unjustified” tariff hikes.