Calls for a national dialogue on electricity pricing and reform are growing louder as concerns mount over the Electricity Company of Ghana’s (ECG) proposed 225% tariff increase.
Tax analysts, consumer advocates, and industry groups are warning that such a steep rise could cripple businesses, worsen living costs, and deepen economic hardship for low-income households.
Francis Timore Boi, a tax and financial analyst, called for a broader stakeholder engagement to examine practical ways to enhance ECG’s operational efficiency rather than relying on massive tariff hikes. “A balanced and phased approach is needed,” he said.
“If ECG truly needs more revenue, a sudden 225% increase is quite drastic for consumers.
“A better approach might involve a phased increase tied to clear milestones such as reducing losses, improving service reliability, and accelerating meter deployment.”
Francis Timore Boi, a tax and financial analyst
He noted that thousands of customers across the country continue to face delays in meter installations, undermining trust and limiting ECG’s revenue collection efforts.
“Many customers have applied for meters and still haven’t received them.
“That’s a fundamental operational issue that must be fixed before consumers are asked to pay more.”
Francis Timore Boi, a tax and financial analyst
Rising Public Discontent
Mr. Timore Boi’s remarks add to growing pressure from consumer groups and business associations.
The Food and Beverages Association of Ghana (FABAG) has already issued a 30-day ultimatum to the government, demanding the establishment of a performance compact for ECG and the Ghana Water Company Limited (GWCL).
The compact, FABAG says, should lay out measurable performance indicators to improve service delivery and ensure value for money before any tariff increases are approved.
The Association argues that inefficiencies within ECG and GWCL including poor maintenance, leakages, and power distribution losses are driving up operational costs that are ultimately passed on to consumers.
In their view, tariff hikes without reform amount to punishing consumers for institutional inefficiencies.
While ECG insists that higher tariffs are necessary to recover costs and invest in infrastructure upgrades, analysts like Mr. Timore Boi argue that tariff increases should be conditional and accompanied by clear accountability measures.
“Tariff increases should be conditional. We need to protect vulnerable groups and essential sectors.
“Any tariff adjustment must come with stronger safety nets.”
Francis Timore Boi, a tax and financial analyst
He proposed that any approved increment be linked to performance improvements, including measurable reductions in technical and commercial losses, better response times to outages, and expanded access to pre-paid meters.
Mr. Timore Boi also recommended exemptions or subsidies for low-income households and essential public services such as hospitals, schools, and water treatment plants.
Efficiency Before Price Increases
Ghana’s electricity sector has long grappled with inefficiencies, including high system losses, outdated infrastructure, and revenue leakages due to illegal connections and poor billing systems.
According to the Energy Commission, technical and commercial losses in power distribution are estimated at over 23%, costing the nation hundreds of millions of cedis annually.
Improving ECG’s operational efficiency could unlock significant savings, reducing the need for drastic tariff adjustments.
“If ECG improves its collection rate and reduces losses, it can generate more revenue without necessarily overburdening consumers.”
Francis Timore Boi, a tax and financial analyst
The Ghana Union of Traders Association (GUTA) and the Association of Ghana Industries (AGI) have both warned that the proposed tariff could undermine competitiveness, especially in energy-intensive sectors such as manufacturing, hospitality, and cold storage.
At the household level, the impact could be equally severe. Many Ghanaians already spend a significant portion of their income on utilities, and a 225% increase would push many families to the brink.
As the debate continues, analysts and civil society organizations are calling for a national dialogue on energy reform, one that includes government, private sector, and consumer representatives.
The goal, they say, should be a sustainable, transparent, and efficient energy sector that supports both economic growth and social welfare.
Until such reforms are implemented, the proposed 225% tariff increase appears likely to face stiff resistance, not only from businesses and consumers but also from a public increasingly demanding accountability and efficiency from its utility providers.
