Former Deputy Power Minister, John Abdulai Jinapor has criticised government over the alarming financial state of the Electricity Company of Ghana (ECG).
Mr Jinapor, who is the Ranking Member on Parliament’s Energy Committee said ECG is in a dire situation and on the verge of collapse.
This comes after the Public Utilities Regulatory Commission (PURC) served notice about ECG’s possible bankruptcy due to severe financial difficulties.
PURC highlighted the crisis that is also impacting the operations of the Volta River Authority (VRA), Ghana Grid Company (GRIDCo), and the Bui Power Authority.
Reacting to the report, the Yapei-Kusawgu MP in an interview on Asempa FM Ekosii Sen programme Thursday, emphasised the need for immediate attention.
“PURC which is the regulator has complained that ECG is not following the Cash Waterfall Mechanism so they are not able to pay tier A. how then can they pay Tier B?
“They have moved from a profit to GH₵316 million to a loss of GH₵10 billion. In 2023, they were inching to GH₵14 billion and in 2 years, you makes loses of more GH₵20 billion? This sector is collapsing the energy sector is on its knees. The PURC which is the independent regulator has sounded the alarm and if this happens, the sector will be gone,” he stated.
Mr Jinapor explained that, it is in the face of these challenges the next National Democratic Congress (NDC) is poised to revamp the energy sector.
“Within the first 100 days, we will involve Ghanaian entrepreneurs thus private sector they can partner foreign companies for the expertise and injection of capital to address the billing and collection. We must address or stop the bleeding. We will also restore the cash waterfall mechanism and respect that,” he noted.
Listen to Mr Jinapor in the video above:Â
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