The Northern Electricity Distribution Company (NEDCo) has put forth a proposal to the Public Utilities Regulatory Commission (PURC) requesting approval for a significant increase in its Distribution Service Charge.
This request comes in the wake of similar tariff proposals from the Electricity Company of Ghana (ECG), the Ghana Grid Company (GRIDCo), and the Volta River Authority (VRA).
NEDCo is proposing a tariff of 153.03 Ghana pesewas per kilowatt-hour for the year 2025, a substantial increase from the current rate of 56.474 pesewas, which equates to a 174 percent rise.
The utility company has indicated that its operational area is extensive and characterized by a sparse customer base, with only 0.01 percent of customers benefiting from special load tariffs, which restricts its capacity to generate adequate revenue to meet both fixed and variable costs.
The company further elaborated that its projected variable cost per unit for 2025 is 67.10 pesewas, while fixed costs are anticipated to be 85.92 pesewas per unit, cumulatively leading to the proposed charge. Additionally, it highlighted that a majority of capital expenditure items, such as network expansion, meters, and IT infrastructure, are denominated in foreign currency, thereby imposing further financial pressure.
During a public hearing held in Accra on Tuesday, September 9, Hashim Iddrisu, the Director in Charge of Commercial at NEDCo, stated:
