Energy Minister-Designate, John Jinapor has instructed the Electricity Company of Ghana (ECG) to stop all payments for supplies immediately as part of efforts to address inefficiencies and stabilize the power sector.
He issued a strong warning to ECG staff, particularly those in the finance directorate, emphasizing that failure to comply would lead to serious consequences.
Jinapor noted that ECG has been struggling with significant revenue losses, partly due to the challenge of managing over 70 accounts, which has made monitoring and control difficult.
To improve the situation, he committed to implementing comprehensive reforms aimed at streamlining ECG’s operations, enhancing efficiency, and improving service delivery to the public.
He pointed out that the financial struggles were mainly caused by operational inefficiencies, with ECG losing over 40% of the power it generates, compared to the 2-4% losses experienced in other countries. He explained that when $100 worth of power is sold, the company recovers only about 60% due to deductions from contracts, quality assurance processes, IT services, and other provisions.
The directive to suspend payments was issued with the backing of the Chief of Staff, and Jinapor stressed the importance of adhering to it. He highlighted the need to create financial buffers for the company’s stability and announced plans to close ECG’s multiple accounts to ensure better financial oversight and sector reforms.
