ECG’s revenue losses hit GH¢9.7bn in 2022; $8.25bn power sector shortfalls in 2023

As of 2022, the Electricity Company of Ghana’s revenue losses had risen to GH¢9.7 billion, the Africa Centre for Energy Policy (ACEP) has revealed.

It was GH¢295 million in 2017.

ACEP’s Policy Lead on petroleum and conventional energy, Mr Kodzo Yaotse, told journalists at a press conference on Thursday, 19 September 2024 that: “The growing fiscal burden imposed on the economy by ECG’s poor performance has become a ticking time bomb that can undermine the progress made after the domestic and international debt restructuring to keep Ghana solvent.”

He warned: “With the level of debt accumulation and the intervention required of the state, it is just a matter of time before Ghana is plunged into another debt crisis.”

Mr Yaotse pointed out that: “With IPP debt mounting and gas suppliers and transporters demanding payments, the pressure on the government to sacrifice social investment is high.”

He believes the top management of ECG must be removed to salvage what is left of the company.

“The political lethargy to enable ECG to deliver value to the people of Ghana continues to hurt Ghana’s budget and, by extension, development efforts,” he noted.

He said: “The Energy Sector Recovery Programme (ESRP) estimates that realised power sector shortfalls between 2019 and 2023 were about US$8.25 billion.”

“This is a sheer waste of public resources that cannot persist in light of the above.”