The Volta River Authority (VRA) has requested a significant change in its Bulk Generation Charge (BGC) from the Public Utilities Regulatory Commission (PURC), aiming for a 59 percent increase.
VRA wants to raise the tariff from 45.0892 Ghana pesewas per kilowatt-hour to 71.8862 pesewas per kilowatt-hour.
The Authority claims that this increase is essential to fully cover the costs of power generation provided to distribution companies (DISCOs).
VRA states that without this adjustment, it will be increasingly challenging to maintain reliable electricity generation and fulfill its operational and financial responsibilities.
The submission also detailed the tariff requests from other distribution utilities. The Electricity Company of Ghana (ECG) has suggested a charge of 55.7671 pesewas per kilowatt-hour, while the Northern Electricity Distribution Company (NEDCo) is asking for 92.7333 pesewas per kilowatt-hour.
The Enclave Power Company Limited (EPCL) has made the highest request, proposing 147.1775 pesewas per kilowatt-hour.
If approved, these proposed increases could significantly raise electricity tariffs for both households and businesses, intensifying public discussions about affordability, cost recovery, and the sustainability of Ghana’s power sector.
The VRA’s request follows ECG’s separate proposal for a substantial increase in distribution charges, with ECG seeking an average 224 percent rise in its Distribution Service Charge (DSC1) for the 2025–2029 tariff period.
According to its plan, the charge would increase from the current GHp19.0875/kWh to an average of GHp61.8028/kWh. ECG claims that this review is essential for restoring financial stability and ensuring sustainable service delivery.
The utility points to rising inflation, foreign exchange fluctuations, interest rates, and the necessity for full cost recovery on investments as major reasons.
During a public hearing on Tuesday, September 9, Senior Economic Analyst at VRA, Evans Somuah Mensah, stated, “For many years, VRA has not received compensation for its efforts to support the national connectivity system. We propose that VRA should receive an annual compensation of $30.49 million for Akosombo power generation, and a small amount of $30,000 for Kpone Thermal plant.
“We justify the tariff increase by stating that we need to recover the costs of our power supply to the distribution companies, as well as the costs of transmission and compensation for ancillary services. We are asking the PURC to raise the current tariff of BGC from 45.0892 Ghana pesewas per kilowatt-hour to 71.8862 Ghana pesewas per kilowatt-hour.”
ECG’s forecasts indicate that its annual revenue needs will average GHS 9.1 billion over the next five years, with operational costs, staff expenses, depreciation, capital recovery, and tax obligations expected to increase steadily.