NEDCo owed GHS 1.2bn by consumers

Electricity consumers owed the Northern Electricity Distribution Company (NEDCo) a staggering GH¢1.2 billion as at January 2023, according to information made available by the company’s Corporate Communication Manager, Maxwell Kotoka.

NEDCo is a subsidiary of the Volta River Authority (VRA) and spends a hefty GH¢120million every month to ensure electricity is available to consumers. Unfortunately, due to rampant power theft and non-payment by consumers, NEDCo is only able to recoup GH¢85million monthly. This leaves the company with losses of over GH¢35million monthly, a worrying trend that has been making it difficult for the company to replace obsolete equipment and undertake major repair and maintenance work to improve service delivery.

The situation is even more dire when one considers that NEDCo owes its parent company, VRA, an estimated GH¢1.6billion for power purchased. In addition to what it owes VRA, NEDCo is also indebted to the state-owned power transmitter, Ghana Grid Company (GRIDCo), to the tune of GH¢48 million. The total debt owed by NEDCo to both VRA and GRIDCo is a cause for concern as it raises questions about the long-term sustainability of the company.

This worrying trend has prompted NEDCo to start a revenue mobilisation exercise to recoup funds owed to the company and to weed out illegal power connections and power theft. The exercise will cover all categories of customers within NEDCO’s jurisdiction, including state-owned enterprises (SOEs), ministries, departments and agencies (MDAs), and metropolitan, municipal and district assemblies (MMDAs). The aim is to ensure that all customers pay their bills promptly to enable NEDCo to continue to provide stable and reliable electricity supply to all its consumers.

In an effort to deal with the challenge of power theft and illegal connections, NEDCo has warned that any persons identified to be engaged in illegal connections would be dealt with in accordance with the law. Recalcitrant customers who refuse to redeem their indebtedness to the company after being served with notices will face legal action. This is a clear indication of NEDCo’s determination to recover funds owed to it and to ensure that customers are held accountable for their actions.

The situation with NEDCo is a worrying trend for the Ghanaian economy as a whole, as it raises questions about the long-term sustainability of the power sector in the country. The power sector plays a critical role in driving economic growth and development, and the inability of NEDCo to recover funds owed to it could lead to a major disruption in the supply of electricity to consumers. The Ghanaian government must take steps to address the issue of power theft and non-payment by consumers, and to support NEDCo in its efforts to recover funds owed to it.

It is worth noting that NEDCo faced a major challenge last year when its staff in Tamale were attacked by some residents. The workers were said to be carrying out their routine work in the area when the incident occurred, leading to a suspension of NEDCo’s operations in Tamale. The situation was eventually resolved after the utilities regulator, the Public Utilities Regulatory Commission (PURC), intervened. However, incidents such as these highlight the challenges faced by power distributors such as NEDCo, and the need for the government to take proactive steps to protect workers and ensure that they can carry out their duties without fear of attack.

Source: norvanreports.com