The Africa Centre for Energy Policy (ACEP) has issued a stark warning about the mismanagement of the Electricity Company of Ghana (ECG), revealing that the company’s inefficiency and lack of transparency are contributing significantly to the country’s looming fiscal crisis.
Kodzo Yaotse, ACEP’s Policy Lead for Petroleum & Conventional Energy, presented damning figures at a press conference, showing that between 2017 and 2022, ECG’s losses ballooned from GHS 295 million to GHS 9.7 billion, with under-recoveries reaching GHS 13.6 billion between August 2023 and July 2024.
Yaotse emphasized that ECG’s inability to collect enough revenue, coupled with the mishandling of funds and manipulation of exchange rates, is placing a tremendous burden on Ghana’s budget.
Despite directives from the President and the Public Utilities Regulatory Commission (PURC) to improve transparency and consolidate ECG’s revenue collection into a single account, the company continues to operate 61 accounts through 16 banks, making effective oversight nearly impossible.
ACEP recommends immediate reforms, including an audit of the controversial Hubtel contract and the dismissal of ECG’s current management, to salvage the company and avoid further financial damage.
Source:dailydemocratnewsonline.com