In a strategic move to mitigate mounting financial strains on the Electricity Company of Ghana (ECG), Andrew Egyapa Mercer, Deputy Minister of Energy, has unveiled plans by the Government to outsource the utility company’s billing and collection operations.
The move comes on the heels of significant fiscal setbacks, with the ECG registering a staggering GHC 2,050,373,143 in collection losses as of September 2023—a marked increase from the GHC 2,448,770,084 incurred in 2022.
Speaking on the Asaase Breakfast Show, Mr Mercer delineated the government’s vision, noting that a specialized consultant had been engaged to collaborate with the ECG on outlining the modalities of this transformative initiative. The decision, approved by the cabinet, underscores a pivotal shift towards financial rectitude, aiming to curtail revenue leakages stemming from non-payment, delinquency, and bad debts.
The Minister articulated the imperatives behind this strategic overhaul, emphasizing the exigency of instating financial sustainability within the energy sector.
“The conversation about getting private sector people to actually bill and collect knowing that the bulk power that has come into your territory is a certain amount for which ECG is collecting its money policy paper has been presented to cabinet, it has gotten approval to revisit ECG issue and make sure we fix that leak that exists. So that we can bring some financial sustainability into the space otherwise we will be going in circles.”
“We are working to ensure that happens, in fact, a consultant has been appointed to work with ECG on some modalities and am sure that this year we will roll out this year full swing to bring the kind of relief to consumers,” he noted.
The envisioned reform crystallizes the government’s commitment to revitalizing Ghana’s energy landscape, fostering an environment conducive to robust economic growth while assiduously safeguarding consumer interests.
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