VRA pushes for 59% hike in bulk power tariffs

The Volta River Authority (VRA) has applied to the Public Utilities Regulatory Commission (PURC) for a 59 percent upward review of its Bulk Generation Charge (BGC).

If approved, the tariff will rise from 45.0892 pesewas per kilowatt-hour to 71.8862 pesewas per kilowatt-hour. VRA argues that the adjustment is crucial to fully recover the cost of power generation supplied to distribution companies (DISCOs).

The Authority warned that without the increase, sustaining reliable electricity generation and meeting operational and financial obligations will become increasingly difficult.

Other tariff proposals
VRA’s submission also highlighted requests from other utilities. The Electricity Company of Ghana (ECG) is seeking approval to charge 55.7671 pesewas/kWh, while the Northern Electricity Distribution Company (NEDCo) has proposed 92.7333 pesewas/kWh. The Enclave Power Company Limited (EPCL) submitted the highest request at 147.1775 pesewas/kWh.

If granted, the proposed adjustments could significantly impact electricity costs for households and businesses, intensifying public debate over affordability, cost recovery, and the long-term sustainability of Ghana’s power sector.

Link to ECG’s review
VRA’s request comes shortly after ECG proposed an average 224 percent increase in its Distribution Service Charge (DSC1) for the 2025–2029 tariff period. ECG is seeking to raise the charge from GHp19.0875/kWh to GHp61.8028/kWh, citing rising inflation, foreign exchange volatility, interest rates, and the need for full cost recovery on investments.

ECG’s projections show annual revenue requirements averaging GHS 9.1 billion over the next five years, driven by operational costs, staff expenses, depreciation, capital recovery, and tax obligations.

VRA justifies demand
Speaking during a public hearing on Tuesday, September 9, Senior Economic Analyst at VRA, Evans Somuah Mensah, stressed the need for compensation to sustain the authority’s operations.

“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 Kpone Thermal plant, 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,” he explained.

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