ASEC warns PURC against electricity price hike
ASEC insists that a rigorous national debate and a thorough examination of the electricity distribution system must precede any tariff hikes. The organisation contends that the Public Utility Act prioritises consumer interests in setting electricity rates, but this mandate has been overlooked for years. While reflective tariffs are essential for operational sustainability, ASEC maintains that the sector must resolve its deep-seated inefficiencies before shifting additional financial burdens onto consumers.
“ASEC demands a regulatory framework that requires electricity distribution companies to show proof of at least a 95% collection rate before any tariff increase can be considered. The current 62% is unjustifiable for any tariff increment,” the Director for Research and Innovation at ASEC stated.
ASEC believes it unacceptable to shift the financial burden onto responsible consumers who diligently pay their bills. Until collection rates improve, any discussion of tariff hikes remains unfair and premature.
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| Dr. Elvis Twumasi, Director of Research & Innovation |
Service Quality Concerns and Financial Management
ASEC further argues that Ghanaians are not receiving value for their electricity payments. Issues such as frequent power outages ("dumsor"), voltage fluctuations, and poor customer service persist. The organisation asserts that it is unfair to demand higher tariffs when service reliability remains subpar. They call for infrastructure improvements and better service delivery before any consideration of tariff adjustments.
Additionally, ASEC insists on full disclosure of revenue collection, operational expenses, and financial losses in the sector. If utility companies claim financial distress, they must present a transparent breakdown of expenditures. Without such accountability, tariff increases serve only to cover inefficiencies rather than enhance service delivery. ASEC argues that “consumers have a right to know how their money is being managed. There must be full disclosure of revenue collection, operational costs, and financial losses in the sector. If utility companies claim they are operating at a loss, they must provide a transparent breakdown of where the funds are going. Without such accountability, tariff increments become a means of covering inefficiencies rather than improving service delivery".
Unethical Practices in Energy Consumption
ASEC has also raised concerns about businesses that use electricity without paying and then sell their products to law-abiding consumers. The organisation describes this as an unethical practice that unfairly distributes the cost burden and discourages responsible energy use.
“This unethical practice distorts cost distribution. The government and regulatory bodies must take decisive action to ensure all consumers - residential, commercial, and industrial to pay their fair share,” Dr. Twumasi emphasised.
They further stress that system losses have drained the financial resources of the distribution sector and contributed to revenue shortfalls. Addressing these inefficiencies should be the priority instead of relying on tariff hikes.
Long-Term Solutions Over Tariff Hikes
ASEC urges Ghana’s electricity sector to focus on sustainable, long-term solutions rather than relying on tariff increases. The organization advocates for “improving transmission and distribution infrastructure, investing in renewable energy sources, modernizing grid systems, and reducing operational waste to make electricity more affordable and sustainable. Efficiency should be the priority, not passing unnecessary costs onto consumers.”
ASEC’s Final Warning to PURC
ASEC maintains that any tariff adjustment must be justified and based on a performance-driven regulatory framework. Additionally, the organization warns PURC to recognize the growing importance of “social licensing,” a concept emphasized by the World Energy Council. This highlights the need for public consent in policy implementation.
Without consumer trust, ASEC warns, any attempt to hike electricity tariffs will face strong resistance. Until real sector reforms are implemented, ASEC categorically rejects any proposed tariff increases, describing them as premature, unfair, and unjustified.