Finance Minister, Dr Mohammed Amin Adam says government has taken steps to establish a single account to streamline the collection and distribution of revenue under the cash waterfall mechanism.
This development is to enhance transparency and accountability while ensuring that beneficiaries within the value chain receive what is due them – all aimed at improving revenue management
Dr Amin Adam said this during a press briefing at the just-ended International Monetary Fund (IMF)/World Bank Group (WBG) Spring Meetings in Washington, US, monitored by the Ghana News Agency.
He said government would, “establish a single collection account so that ECG [Electricity Company of Ghana] will not collect revenue through the many accounts that they operate. The move is to bring accountability and transparency to bear.”
Data provided by ECG to the Public Utilities Regulatory Commission (PURC) – the utility sector regulator, shows that the electricity distributor is operating about 61 separate accounts.
The President, Nana Addo Dankwa Akufo-Addo, has asked the Management of ECG to ensure that the accounts were merged into one in line with IMF conditionalities.
It is against this background that the Minister announced the government’s plan to ensure that ECG operated a single account, in addition to periodic auditing and publication of a cash waterfall mechanism report.
He also indicated that the government would in May 2024, sign an agreement on debt restructuring with Independent Power Producers (IPPs), and procure some one million revenue-efficient meters into the country.
The Minister, who is also an Energy Economist, was confident that those measures would help reduce the deficit in the energy sector, and ensure financial stability while providing Ghanaians with reliable and affordable electricity.
Speaking with the Ghana News Agency on these developments, Nana Amoasi VII, Executive Director, the Institute for Energy Security (IES), lauded the government for the steps it had taken to solve the energy sector challenges.
However, Nana Amoasi VII encouraged the government to continue to invest in electricity generation, transmission, and distribution infrastructure, as well as expand capacity, improve reliability, and meet growing demands.
The IES Executive Director noted that signing a debt restructuring agreement with the IPPs could help reduce arrears and alleviate financial pressures on the government and utilities, potentially leading to improved stability in electricity supply.
“By consolidating revenues and expenses into a single account, ECG can better track and allocate funds for operational and investment purposes, ensuring efficient utilization of resources and enhancing overall performance,” he said.
On the part of consumers, he said, “Despite the challenging economic situation today, Ghanaians should endeavour to pay their electricity bills promptly to support the sustainability of the energy sector, and practice energy conservation.”
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