Ghana: ECG To Invest $1.1 Billion In Distribution Network Over Next Five Years; Seeks Approval For 225% Increase In Distribution Service Charge

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The Electricity Company of Ghana (ECG) has announced plans to invest $1.1 billion in its distribution network over the next five years to improve power supply, this portal can confirm.

According to ECG, the planned investment will cover projects aimed at enhancing electricity reliability, reducing technical losses, improving revenue collection, and addressing other operational areas.

Of the total $1.6 billion investment plan, the allocation is as follows:$426 million for reliability improvement projects, $89 million for technical loss and voltage improvement projects, $925 million for commercial and revenue improvement projects, and $182 million for other distribution network-related projects.

Out of the total amount, donors and the Government of Ghana are expected to contribute $222 million, with the remaining $1.4 billion to be funded through tariff provisions.

As a result, ECG has proposed to the Public Utilities Regulatory Commission (PURC) to increase its distribution service charge from Ghp19.03 per kilowatt-hour (kWh) to Ghp64.80 per kWh, representing a 225% increase for the 2025–2029 Multi-Year Tariff Review period.

ECG has already invested $408 million since 2022 in substations, system automation, and the deployment of 1 million smart meters.

The company plans to roll out an additional 3.1 million smart meters if the new tariff is approved.

The company assures customers of improved billing accuracy, free replacement of faulty meters, faster complaint resolution, and enhanced voltage supply.

The PURC began tariff consultations on Monday, with civil society organizations (CSOs) and media representatives in attendance.

The commission will make its final decision after the stakeholder consultation process is completed.

Source:https://energynewsafrica.com


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