The Managing Director of the Electricity Company of Ghana (ECG), Samuel Dubik Mahama, has disclosed the significant financial impact of rainy weather on the electricity distribution company.
According to Mr. Mahama, ECG loses approximately GH¢25 million whenever it rains in any part of the country due to decreased electricity consumption during cold and wet weather conditions.
In a recent interview, Mr. Mahama highlighted the adverse effects of weather conditions and seasonality on ECG’s electricity sales and revenue.
He explained that, before the rainy season, ECG was averaging daily revenue between GH¢40 to GH¢50 million. However, during rainy days, their earnings drop by GH¢25 million.
Mr. Mahama expressed his concern about the extended rainy season in the country this year, stating that it challenges their revenue planning, as ECG’s tariff remains constant throughout the year.
He also noted that in some parts of the world, tariffs vary depending on weather conditions, but in Ghana, a flat tariff system is employed, resulting in reduced consumption and inadequate revenue collection during the rainy season.
“The truth of the matter is whatever is consumed, I’ll still collect it along the line, but that particular day that it has rained, I may be unable to collect monies owed me by customers,” Mr. Mahama emphasized.
In addition to the financial losses, the Managing Director discussed the operational challenges brought on by rainy weather. Rain hampers the collection of revenue as meter reading and other operational activities become difficult, further complicating ECG’s financial situation.
However, Mr. Mahama assured the public that ECG will eventually collect the owed amounts from customers, despite the challenges posed by rainy weather.
The recent power cuts experienced in Ghana have also raised concerns, with limited gas supply to power plants in Tema and Takoradi being blamed as a contributing factor.
The Ghana National Petroleum Corporation (GNPC) accused ECG of failing to pay its debt to settle the West African Gas Pipeline Company for the supply of gas, leading to gas supply issues and power disruptions in the country.
