ASEC condemns ECG’s proposed 225% tariff hike as outrageous and unjustified

ASEC condemns ECG’s proposed 225% tariff hike as outrageous and unjustified

The Africa Sustainable Energy Centre (ASEC) has strongly condemned the Electricity Company of Ghana’s (ECG) proposal to increase electricity tariffs by 225 percent, describing it as “outrageous and unjustified.”

In a statement issued on Monday, September 22, ASEC said while tariff reviews are permissible under Public Utilities Regulatory Commission (PURC) regulations, adjustments must be fair, transparent, and tied to measurable improvements in ECG’s performance.

The group argued that ECG’s operational inefficiencies, such as poor revenue mobilisation, outdated collection methods, and persistent debt accumulation, should not be used as grounds for punishing customers who pay their bills.

“Customers who diligently pay their bills must not be penalised for ECG’s inefficiencies and mounting debts,” the statement read.

ASEC questioned ECG’s accountability, demanding explanations on unresolved issues, including the whereabouts of missing ECG containers, progress on debt recovery from government institutions, and the status of the GHC 1 levy.

It stressed that without addressing these lapses, ECG has “no operational basis” for any tariff increment, let alone a 225 per cent hike.

The Centre also criticised PURC for consistently approving tariff proposals without adequate scrutiny, warning that such practices have worsened economic hardships while power supply remains unreliable.

ASEC urged that any future tariff adjustment must be progressive and linked to tangible reforms, cautioning that “pouring money into ECG without reform is like pouring water into a torn sack.”

The Centre called for accountability, innovation, and structural reforms to resolve ECG’s debt crisis, insisting that arbitrary hikes will only deepen the burden on citizens.

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