The Northern Electricity Distribution Company (NEDCo) has submitted a proposal to the Public Utilities Regulatory Commission (PURC) seeking approval for a sharp increase in its Distribution Service Charge.
This follows similar tariff proposals from the Electricity Company of Ghana (ECG), the Ghana Grid Company (GRIDCo), and the Volta River Authority (VRA).
NEDCo has proposed a tariff of 153.03 pesewas per kilowatt-hour for 2025, compared to the current 56.474 pesewas, marking a 171% increase.
Speaking during a public hearing in Accra on Tuesday, September 9, the Director in Charge of Commercial at NEDCo, Hashim Iddrisu, said: “We’re proposing an increase of 171%. We expect that the new tariff that we’re proposing will have an impact on our performance, our collection rate will increase, and distribution losses will improve from 31% to 21%.”
According to the utility company, its operational area is geographically vast with a sparse customer base, and only 0.01 per cent of customers are on special load tariffs, limiting its ability to generate sufficient revenue to cover fixed and variable costs.
The company clarified that for 2025, its variable cost per unit is projected at 67.10 pesewas, with fixed costs estimated at 85.92 pesewas per unit, figures that together justify the proposed tariff.
It added that a significant portion of its capital expenditure, such as network expansion, meters, and IT systems, is denominated in foreign currency, which has worsened its financial pressures.
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Source: myjoyonline.com
