ECG Loses GH¢2bn In 9 Months | General News

In a recent announcement by the Electricity Company of Ghana (ECG), it has been revealed that the power distribution company has made a significant increase in its collection losses for the first nine months of 2023.

As of September 2023, the company recorded a staggering amount of GH¢2,050,373,143.47 in collection losses, reflecting a concerning trend in non-payment, delinquency, and bad debt from tenants and customers.

This figure represents a notable rise compared to the GH¢2,448,770,084.34 loss recorded by the company last year, highlighting a growing challenge that ECG faces in maintaining its financial stability.

Collection loss is the income that is not received due to non-payment, delinquency, or bad debt from tenants or customers.

The amount is against a total of GH¢2, 448,770,084.34 loss recorded by the company in the year 2022.

For system losses, according to Energy Minister, Mathew Opoku Prempeh the ECG had recorded GH¢4,038,241,812.63 loss as of September 2023 as against an amount of GH¢2,599,695,242.10 in 2022.

The lawmaker also disclosed that the company made technical losses of GH¢1,279,369,021.42 as of September 2023 as against GH¢2,758,872,792.21 in 2022.

Touching on commercial losses, the Energy Minister indicated that the ECG lost GH¢2,758,872,791.21 as against GH¢1,852,597,985.96 recorded in 2022.

Minister of Energy, Dr Matthew Opoku Prempeh made this revelation when he gave an update on the country’s power situation in Accra on Thursday.

He expressed his apprehension regarding the escalating collection losses.

He emphasized the urgency of implementing effective measures to address the issue and safeguard the company’s ability to provide reliable electricity services to its customers.

He shed light on the factors contributing to the rise in collection losses, including non-payment of bills, delinquency in settling outstanding balances, and the accumulation of bad debts.

These challenges have strained the company’s financial resources, hindering its ability to meet the electricity demands of its customers.

In response to the alarming situation, ECG is implementing a series of strategies aimed at improving its revenue collection processes and reducing collection losses.

These measures include enhancing billing and payment systems, intensifying efforts to educate and engage customers, and implementing robust debt recovery mechanisms.

Collaboration with various government agencies and stakeholders is also a key aspect of ECG’s strategy. The company is working closely with the Ministry of Energy, the Public Utilities Regulatory Commission (PURC), and other utility providers to develop comprehensive solutions in tackling collection losses.

The focus is on establishing effective debt recovery mechanisms and implementing measures to ensure financial sustainability.

The Minister urged customers to fulfill their financial obligations by promptly paying their electricity bills.

He emphasized the critical role of timely bill payments in sustaining the electricity sector and ensuring the provision of reliable services to all customers.

ECG plays a vital role in Ghana’s infrastructure, generating, transmitting, and distributing electricity to millions of households, businesses, and industries.

The surge in collection losses poses a significant challenge that demands immediate attention to maintain the financial stability and operational efficiency of the company.

As Ghana strives for reliable and affordable electricity services, it is imperative for all stakeholders, including the government, utility providers, and customers, to collaborate and address the issue of collection losses.

By working together, they can ensure the long-term sustainability of the electricity sector and support the country’s economic growth and development.

ECG continues to prioritize improving its revenue collection processes and reducing collection losses, with the ultimate goal of providing uninterrupted and reliable electricity services to its valued customers.