The Africa Centre for Energy Policy (ACEP) has raised alarms over the mounting debt in Ghana’s energy sector, revealing that the country is accumulating around $67 million monthly in unpaid obligations.
ACEP attributes this growing debt primarily to the low revenue recovery rate of the Electricity Company of Ghana (ECG), which is currently just 57 percent.
ACEP’s Policy Lead for Petroleum and Conventional Energy, Kodzo Yaotse, emphasized that increasing ECG’s revenue collection must become a top priority for both the government and ECG itself.
He warned that failure to address this issue would not only worsen the current debt crisis but also exacerbate the financial strain on Independent Power Producers (IPPs), who are already owed substantial sums due to Ghana’s legacy energy debt.
“ECG is only collecting 43 percent of its revenue, leaving 57 percent uncollected. This shortfall adds up to $67 million each month, which, if left unresolved, will only add to the legacy debt owed to IPPs. We must ensure optimal revenue collection to prevent further escalation,” Mr Yaotse stressed.
Source: Adomonline
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