VRA seeks 59% tariff hike to recover power generation costs
The Volta River Authority (VRA) has applied to the Public Utilities Regulatory Commission (PURC) for a sharp adjustment in its Bulk Generation Charge (BGC), seeking a 59 percent increase.
VRA is requesting approval to raise the tariff from 45.0892 Ghana pesewas per kilowatt-hour to 71.8862 pesewas per kilowatt-hour.
The Authority argues that the increase is critical to fully recover the cost of power generation supplied to distribution companies (DISCOs).
According to VRA, without this adjustment, sustaining reliable electricity generation and meeting its operational and financial obligations will become increasingly difficult.
The submission also outlined the tariff demands of other distribution utilities. The Electricity Company of Ghana (ECG) has proposed a charge of 55.7671 pesewas per kilowatt-hour, while the Northern Electricity Distribution Company (NEDCo) is seeking 92.7333 pesewas per kilowatt-hour.
The Enclave Power Company Limited (EPCL) submitted the highest request, proposing 147.1775 pesewas per kilowatt-hour.
If approved, the proposed hikes could substantially raise electricity tariffs for households and businesses, deepening public debate over affordability, cost recovery, and the sustainability of Ghana’s power sector.
The VRA’s request comes on the heels of ECG’s separate proposal for a steep upward review of distribution charges. ECG is seeking an average 224 percent increase in its Distribution Service Charge (DSC1) over the 2025–2029 tariff period.
Under its plan, the charge would rise from the current GHp19.0875/kWh to an average of GHp61.8028/kWh. ECG argues that the review is vital to restoring financial stability and ensuring sustainable service delivery.
The utility cites rising inflation, foreign exchange volatility, interest rates, and the need for full cost recovery on investments as key justifications.
Speaking during a public hearing on Tuesday, September 9, Principal Economic Analyst at VRA, Evans Somuah Mensah, said, “Over the years, VRA has not been compensated for doing this work to assist the national connectivity system. We are saying that on an annual basis, VRA should be given compensation $30.49 million for Akosombo power generation, and Kpong Hydro Dam, a little bit of $30,000.
“Justification for tariff increase, we are saying that we want to recover the cost of our power supply to the distribution companies, and recover the cost of transmission and also be compensated for the provisions of ancillary services.
“We are requesting the PURC to increase the existing tariff of BGC from 45.0892 Ghana pesewas per kilowatt-hour to 71.8862 Ghana pesewas per kilowatt-hour.”
ECG’s projections show its annual revenue requirements averaging GHS 9.1 billion over the next five years, with operational costs, staff expenses, depreciation, capital recovery, and tax obligations expected to rise steadily.
