The Volta River Authority (VRA) has formally applied to the Public Utilities Regulatory Commission (PURC) for a significant upward adjustment in its Bulk Generation Charge (BGC), proposing a 59% increase.
The Authority is requesting approval to raise the rate from 45.0892 Ghana pesewas per kilowatt-hour to 71.8862 pesewas per kilowatt-hour.
VRA maintains that the increment is essential to fully recover the cost of generating electricity supplied to distribution companies (DISCOs). Without this adjustment, it warns, maintaining dependable power generation and meeting both operational and financial commitments will become increasingly challenging.
The submission also highlighted tariff proposals from other distribution utilities. The Electricity Company of Ghana (ECG) is seeking 55.7671 pesewas per kilowatt-hour, while the Northern Electricity Distribution Company (NEDCo) has requested 92.7333 pesewas per kilowatt-hour. The Enclave Power Company Limited (EPCL) submitted the highest proposal at 147.1775 pesewas per kilowatt-hour.
If approved, these increases could lead to a substantial rise in electricity costs for households and businesses, intensifying public debate over affordability, cost recovery, and the long-term viability of Ghana’s energy sector.
VRA’s application follows ECG’s separate request for a sharp upward review of its Distribution Service Charge (DSC1) for the 2025–2029 tariff period. ECG is proposing an average 224% increase, moving from the current GHp19.0875/kWh to an average of GHp61.8028/kWh. The company argues that the adjustment is necessary to restore financial health and ensure sustainable service delivery, citing inflation, currency depreciation, rising interest rates, and the need for full cost recovery on infrastructure investments.
Speaking at a public hearing on Tuesday, September 9, VRA’s Principal Economic Analyst, Evans Somuah Mensah, explained:
“Over the years, VRA has not been compensated for supporting the national connectivity system. We are requesting annual compensation of $30.49 million for Akosombo power generation and about $30,000 for the Kpong Hydro Dam. The tariff increase will allow us to recover the cost of supplying power to distribution companies, cover transmission expenses, and be compensated for providing ancillary services.”
He reiterated VRA’s request for the PURC to raise the BGC from 45.0892 Ghana pesewas per kilowatt-hour to 71.8862 pesewas per kilowatt-hour.
ECG’s financial projections indicate annual revenue needs averaging GHS 9.1 billion over the next five years, with operational costs, staffing expenses, depreciation, capital recovery, and tax obligations expected to climb steadily.
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