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The Minister-Designate for Energy, John Jinapor, has directed the Electricity Company of Ghana (ECG) to immediately suspend all payments for supplies in a decisive move aimed at addressing inefficiencies and stabilising the power sector.
The directive forms part of broader reforms designed to enhance operational efficiency and financial stability within ECG.
In a statement issued during an interview with Citi FM on Thursday, January 9, 2025, Mr Jinapor expressed concern over the significant revenue losses ECG has been experiencing.
He attributed these setbacks to inefficiencies in the company’s operations, particularly the existence of over 70 separate accounts, which he said made monitoring and control virtually impossible.
“The core issue lies in inefficiencies. ECG loses more than 40% of the power it generates, which is unsustainable. Comparatively, other countries have power losses as low as 2-4%. When ECG sells $100 worth of power, only 60% is recovered, and even then, deductions for contracts, IT services, and other provisions further erode revenues,” Jinapor explained.
The Minister-Designate warned ECG staff, particularly those in the finance directorate, against disregarding his directive, stressing that non-compliance would result in severe consequences. “This is an instruction from the Chief of Staff. Payments for supplies must cease immediately. I want to be very clear—failure to adhere to this directive will attract serious repercussions,” he stated firmly.
Jinapor further announced plans to consolidate ECG’s numerous accounts as part of the reform process. “The existence of over 70 accounts hampers proper oversight. These accounts will be closed, and we will create a streamlined system to anchor the financial stability of the company,” he affirmed.
The Energy Minister-Designate reiterated his commitment to reshaping the power sector, ensuring ECG becomes a more efficient and accountable institution.
He assured Ghanaians that the reforms would not only enhance the company’s revenue collection but also create a robust system capable of delivering reliable energy to meet the country’s needs.
source: myjoyonline.com
Yaw Boagyan
