The Minister-Designate for Energy, John Jinapor(JJ), has directed the Electricity Company of Ghana (ECG) to immediately suspend all payments for supplies as part of a broader strategy to address inefficiencies and stabilize the power sector.
Jinaporemphasized that this directive is backed by the Chief of Staff and aims to halt financial leakages within the company.
He warned ECG staff, particularly those in the finance directorate, that ignoring the directive would lead to severe consequences.
Highlighting ECG’s financial struggles, Jinapor revealed that the company is grappling with significant revenue losses, with over 40% of generated power unaccounted for.
This is in stark contrast to losses of 2-4% reported by comparable countries.
“The challenge of money emanates from inefficiencies,” Jinapor said.
“If ECG loses over 40% of its power generated, no matter what you do, you cannot find a solution.
Other countries are doing just about 2-4% losses.
With $100 worth of power, ECG collects only 60%.
On top of that, there are numerous deductions for contracts, quality assurance, IT, and other provisions.”
Jinapor also pointed out that ECG operates over 70 accounts, making effective monitoring and control nearly impossible.
As part of his reform agenda, he pledged to streamline the company’s operations by consolidating its accounts and implementing measures to ensure financial discipline.
“All those numerous accounts will be closed.
We need some serious buffers to anchor the system.
This sector needs reform, and we will reform it,” Jinapor stressed.
The Minister-Designate assured the public that these measures are necessary to stabilize the power sector and improve service delivery, promising significant reforms to enhance the efficiency of ECG’s operations.
He spoke on Citi FM on Thursday January 9, 2025.
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