ECG economist says utility will “work with what we have” after PURC approves far lower tariff increase

Energy Economist at the Electricity Company of Ghana (ECG), Ebenezer Baiden, says the company will continue operating within its limited revenue envelope after the Public Utilities Regulatory Commission (PURC) approved a far lower tariff adjustment than ECG requested.

He noted that regulators attempted to balance consumer affordability with utility needs, and ECG would now focus on delivering results with the revenue approved.

He stressed that the company had no choice but to operate within the constraints: “We’re going to now take whatever has been given and then work with it.”

Baiden said ECG is committed to maximising the value of its allocation despite financial pressures. He pointed to recent gains, including improved payment of invoices from upstream providers through the cash waterfall mechanism.

ADVERTISEMENT

According to him, the company is in a better position today than in previous years, even if still short of what is required. He conceded that the 9.86% tariff increment approved by the PURC is “not enough” compared to ECG’s long-term investment needs.

He explained that ECG had sought a major rebase of its distribution charges, which had not been reviewed for a long time. While PURC approved a minimal rise, ECG’s initial combined request, covering VRA, GRIDCo and ECG, amounted to about 46%.

Baiden also highlighted the government’s renegotiation of power contracts, which significantly reduced generation costs. Since the generation component makes up 65–70% of the tariff structure, these revisions heavily shaped PURC’s final decision.

Even so, ECG’s share of the tariff remains comparatively small.

Baiden clarified that the distribution portion, ECG’s domain, is only about 11% of what customers pay, and the increase approved for ECG itself is in the 2–5% range.

Despite the funding gap, he said the company remains determined to sustain and improve service, citing ongoing upgrades like expanded customer service centres and digital tools such as the Power App.

On whether the approved tariff level is enough to keep electricity stable, he insisted: “We will do our best to keep the lights on.” He added that ECG would even consider borrowing if necessary to maintain essential services.