ECG MD laments effects of cedi depreciation on operations

The Electricity Company of Ghana has again cited the depreciation of the Cedi against the dollar for its net exchange losses recorded in the 2022 financial performance report.

Appearing before the Public Accounts Committee on August 12, the Deputy Energy Minister Collins Adomako-Mensah and Managing Director of the Electricity Company of Ghana, Samuel Dubik Mahama explained the reasons for the loss.

Among the reasons he cited are payment to the IPPS in foreign currency, the purchasing of meter, transformers also in dollars and other components.

Member of Parliament for Buem, Kofi Adams said the financial performance for 2022 doesn’t look good if compared to the 2021 report. According to him, the company’s distribution expenses rose to 32.6% and administrative expenses also saw a rise of 36.3%.

Mr Samuel Dubik Mahama explained that “our distribution cost going up is as a result of the forex. Most of our jobs that we do within ECG are all priced in US dollars. The meter, transformer purchase and other intensification jobs are all priced in dollars. The ECG now pays the IPPS and that is also done in dollars from its current jobs.”

It would be recalled that recently, residents of Ketu South Municipality in the Volta Region demonstrated over what they described as unacceptable billing practices by the (ECG).

The MD of the power distributor also acknowledged the challenges but said the company is expanding its engagements in communities within the regions to educate consumers.

“We have engaged a few communities in the Volta and Central regions, but we need to expand it and also intensify it, what we are realizing now is that most people don’t know that meters expire. They don’t have a long lifespan and it’s something that is not the fault of the customer so it’s something that we have to educate them on,” he said.

He further explained that “…now we have moved to meters that are properly electronic so with this when you are charging your phone it sees everything. …so every single action you take will reflect and let’s not forget that the PURC has increased tariffs to about 75% and the whole conversation about electricity conservation must be brought back, because the mere fact that there is no plug in the wall socket doesn’t mean that you should leave it on, because it’s reading.”

Source:onuaonline.com