The Energy Minister-Designate, John Jinapor, has issued a strong directive to the Electricity Company of Ghana (ECG), ordering an immediate suspension of all payments for supplies.
This move aims to address inefficiencies and stabilize the country’s power sector.
Mr. Jinapor, during an interview on Citi FM, stressed the serious consequences for defying the order, as it was crucial to set up buffers to strengthen the system.
He pointed out that ECG operates over 70 accounts, making effective monitoring difficult, and called for sector reforms.
The Minister-Designate linked the inefficiencies to significant losses, with ECG losing over 40% of the power it generates, which is far higher than the 2-4% losses in other countries.
“The challenge of money emanates from inefficiencies. Because 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. So, with this $100 worth of power, you buy and sell, you collect only 60% and even with that, there are so many contracts, quality assurance, IT, provision and others.
“They are all deducting monies at the source. So, I have told the ECG, and this is also an instruction from the Chief of Staff, to seize all payment for supplies and I mean it. I have told them and if anybody is listening and is within ECG, whether the finance directorate, this was the instruction we gave them yesterday,” he added.
He further explained that despite selling $100 worth of power, ECG only collects about 60% due to deductions from various contracts, including quality assurance, IT, and provision costs.
Mr. Jinapor’s directive came on the heels of President John Mahama’s announcement on January 8, 2025, regarding ongoing discussions on privatizing power distribution in Ghana.
Mahama had earlier highlighted concerns about ECG’s revenue losses, attributing them to operational inefficiencies, financial mismanagement, and poor service delivery.