Ghana ranked 27th country with cheapest cost of electricity globally

Ghana ranked 27th country with cheapest cost of electricity globally

Ghana has been ranked among 30 countries with the cheapest cost of electricity globally.  

According to Global Petrol Prices.Com, Ghana is the 27th country with the cheapest cost of electricity.

World average price of electricity is pegged at $0.133 per kilowatt/hour (kWh) for household users and $0.124 per kWh for business users.

In Ghana, the cost of electricity per kilowatt/hour for household is $0.046 cents which is less than a dollar.

The situation is similar to that of business consumers.

Also, on the African Continent Ghana ranks ninth, but first within the West African sub-region.

Ghana’s $0.046 cents [GHS 0.368] cost of electricity per kilowatt/hour clearly shows that the cost of electricity in the country for household, compared to other countries on the continent is very low. 

Meanwhile, Sudan has the cheapest cost of electricity on the African Continent and hence ranks first in Africa.

RANKING OF COUNTRIES WITH CHEAPEST COST OF ELECTRICITY IN AFRICA FOR HOUSEHOLD CONSUMERS

Given the country’s cheap cost of electricity in the West African sub-region, on the Continent and the world at large, it stands to reason why the Electricity Company of Ghana (ECG) would demand a 148% increment in electricity tariff.

ECG makes 148% increase in tariff proposal to PURC

Power distribution company, the Electricity Company of Ghana (ECG), has submitted a proposal to the Public Utilities Regulatory Commission (PURC), seeking approval for the upward review of electricity tariff by 148% for this year.

For the subsequent years – from 2023 to 2026 – the ECG is seeking further approval of 7.6% tariff increase on its Distribution Service Charge (DSC) ie charge for distributing electricity to Ghanaian households.

ECG in its multi-year tariff review proposal for the period from 2022-2026, asserts the high tariff increase is attributable to the cost of investment projects, existing gap between actual cost recovery tariff and PURC approved tariffs and the effect of macroeconomic factors such as inflation and exchange rate.

According to the electricity distribution company, the current DSC of GHS 16.10/kWh is inadequate and has eroded the financial viability of the ECG which has had an adverse impact on the entire distribution sector.

It however believes that, with a DSC charge of GHS 39.95/kWh – that is the 148% increment – it will be able to recover actual cost of electricity distribution and remain financially viable.

Adding that, with the huge investment needs facing the distribution industry over the next five years, it is expected that the proposed tariff increases would inevitably be approved to sustain efficient and reliable electricity distribution service.

The tariff proposal made to PURC by the ECG is yet to be approved.