Tariff proposal: We rejected all long-term ECG tasks – PURC discloses – Life Pulse Daily

Introduction

The Public Utilities Regulatory Commission (PURC) of Ghana has made a significant announcement regarding the Electricity Company of Ghana (ECG) tariff proposal. Strikingly, the Commission disclosed that it rejected every long-term digital marketing initiative proposed by ECG. Dr. Shaffic Suleman, acting Executive Secretary of PURC, explained that this decision stemmed from stringent criteria requiring utilities to prove the necessity and impact of their proposed investments. Despite acknowledging the urgent need for modernization, PURC prioritized projects demonstrating immediate benefits, leading to a tariff adjustment of 9.6% for ECG and 15% for the Ghana Water Company Limited (GWCL). This article explores the rationale, implications, and future outlook of this pivotal regulatory decision.

Key Points

ECG’s Long-Term Digital Marketing Proposals Struck Down

No long-term digital marketing projects submitted by ECG were approved in the latest tariff proposal. Dr. Suleman emphasized the necessity of demonstrating “cause and effect” for every investment, a standard that many initiatives failed to meet.

Focus on Critical Short- and Medium-Term Projects

PURC approved funding only for ongoing projects and those deemed essential for immediate service improvements. The Commission highlighted economic constraints as the primary reason for rejecting speculative, long-term investments.

Tariff Adjustments Reflect Balancing Act

The 9.6% tariff increase for ECG and 15% for GWCL aim to balance consumer affordability with infrastructural investments. However, Dr. Suleman acknowledged this raise would still challenge ECG’s operational sustainability.

Background

Role of the Public Utilities Regulatory Commission

Established under Ghana’s National Petroleum Authority (NPA) Act, 2006, PURC regulates tariffs for electricity, water, and natural gas. Its mandate includes ensuring fair pricing, protecting consumers, and promoting infrastructure upgrades while maintaining financial viability for public utilities.

ECG’s Tariff Proposal: A Contextual Analysis

ECG’s 2025 tariff review included proposals for digital marketing and IT upgrades, such as smart grid technologies and billing systems. The company argued that these long-term investments were vital to modernize operations, reduce technical losses, and improve customer service. However, PURC’s rigorous evaluation process, based on economic feasibility and public interest, led to a blanket rejection of these initiatives.

Analysis

Why Were Long-Term Tasks Rejected?

PURC’s decision hinges on three factors:

1. Economic Realities: Ghana’s economic challenges, including inflation and currency devaluation, limit the Commission’s willingness to fund projects with delayed returns.
2. Regulatory Standards: Each proposal needed concrete data linking investments to service quality improvements, such as reduced billing errors or enhanced load distribution metrics.
3. Stakeholder Balance: Prioritizing immediate needs ensures utilities can operate without overburdening consumers, a critical consideration during economic downturns.

Impact on ECG’s Future Strategy

ECG must now focus on short-term, high-impact projects like repairing aging infrastructure in high-demand areas (e.g., Accra’s industrial zones). The Commission urged ECG to adopt phased modernization plans, starting with pilot BSP upgrades paired with measurable load data analyses.

Practical Advice for Utilities and Consumers

How Utilities Can Align with Regulatory Expectations

• Data-Driven Proposals: Provide detailed cost-benefit analyses, including historical load data and projected ROI, to justify investments.
• Phased Implementation: Propose pilot programs for long-term strategies, allowing PURC to assess viability incrementally.
• Transparency in Reporting: Regularly publish performance metrics to demonstrate how funds are being used effectively.

Consumer Strategies for Affordability

• Energy Conservation: Invest in LED lighting and solar panels to offset rising tariffs.
• Advocacy Groups: Collaborate with consumer protection agencies to monitor tariff adjustments and report inefficiencies.
• Smart Meter Utilization: Use real-time data from smart meters to optimize energy consumption.

FAQ

Conclusion

PURC’s bold decision to reject long-term digital marketing tasks underscores the regulator’s commitment to fiscal responsibility and consumer-centric governance. While ECG and GWCL must navigate tighter budgets, prioritizing critical projects today ensures sustainable growth. Consumers are urged to adopt cost-saving measures, while utilities must align proposals with PURC’s data-driven framework. This balanced approach, though challenging, is vital for Ghana’s energy and water sectors to thrive amid economic turbulence.

Sources

• Public Utilities Regulatory Commission (PURC) Press Release, December 2025

• Joy News’ PM Express Interview with Dr. Shaffic Suleman, 2025

•/Ghana’s Energy Regulatory Framework (Official Documentation)

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