NEDCo seeks 171% tariff increase to tackle financial constraints
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.
The request follows similar tariff proposals from the Electricity Company of Ghana (ECG), the Ghana Grid Company (GRIDCo), and the Volta River Authority (VRA).
NEDCo is asking for a tariff of 153.03 Ghana pesewas per kilowatt-hour for 2025, up from the current 56.474 pesewas, representing a 171 percent rise.
According to the utility company, its operational area is geographically vast with a sparse customer base and only 0.01 percent of customers on special load tariffs, limiting its ability to generate sufficient revenue to cover fixed and variable costs.
The company explained that its variable cost per unit for 2025 is projected at 67.10 pesewas, while fixed costs are estimated at 85.92 pesewas per unit, together adding up to the proposed charge. It further noted that most capital expenditure items, including network expansion, meters, and IT infrastructure, are forex-denominated, creating additional financial strain.
Speaking during a public hearing in Accra on Tuesday, September 9, Hashim Iddrisu, Director in Charge of Commercial at NEDCo, 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%.”
