ECG records GHS 2bn losses from January to September
Remedial actions, particularly in bolstering collection mechanisms and mitigating system and commercial losses, are imperative for the company’s fiscal resilience and the sustained provision of electricity services to Ghanaians.
In a stark revelation during a recent briefing at the Information Ministry on Thursday, November 9, 2023, Energy Minister, Dr. Matthew Opoku Prempeh, disclosed disconcerting financial figures for the Electricity Company of Ghana (ECG).
According to the Minister, the ECG for the first nine months of 2023 saw a concerning surge in losses, painting a challenging landscape for the power distribution giant.
During the aforementioned period, ECG reported a substantial increase in collection losses, totaling GH¢2,050,373,143.47. This staggering figure eclipses the entirety of 2022, where the company recorded collection losses amounting to GH¢2,448,770,084.34.
Collection losses encapsulate income shortfalls attributable to non-payment, delinquency, and bad debts from ECG’s clientele.
Per the Minister, system losses, a metric encompassing both technical and commercial losses incurred during power distribution, also witnessed a notable escalation. As of September 2023, ECG reported a total system loss of GH¢4,038,241,812.63, a substantial uptick from the GH¢2,599,695,242.10 recorded in the previous year.
On a somewhat positive note, technical losses exhibited a decrease, totaling GH¢1,279,369,021.42 in the first nine months of 2023, as opposed to the GH¢2,758,872,792.21 reported in 2022. Technical losses, stemming from energy dissipation during transmission and distribution, suggest potential operational improvements.
However, commercial losses told a different story, exacerbating ECG’s financial challenges. The company reported a substantial increase in commercial losses, reaching GH¢2,758,872,791.21 during the same period. This is a marked rise from the GH¢1,852,597,985.96 recorded in the preceding year. Commercial losses encompass issues such as theft, meter tampering, and billing inefficiencies.
The disclosed financial indicators by the Energy Minister underscore the urgency for ECG to address the multifaceted challenges posed by escalating losses. Remedial actions, particularly in bolstering collection mechanisms and mitigating system and commercial losses, are imperative for the company’s fiscal resilience and the sustained provision of electricity services to Ghanaians.
