The Energy Minister-Designate, John Jinapor, has issued a firm directive to the Electricity Company of Ghana (ECG), demanding an immediate halt to all payments for supplies.
This bold move is part of a larger effort to tackle inefficiencies and bring stability to the country’s power sector.
In a recent interview on Citi FM, Mr. Jinapor emphasized the gravity of the situation, warning of severe consequences for any defiance of the order. He stressed the importance of establishing buffers to fortify the system and ensure its reliability.
Mr. Jinapor highlighted the challenges posed by ECG’s operation of over 70 accounts, which complicates effective monitoring and oversight. He called for comprehensive sector reforms to address these issues and improve efficiency.
The Minister-Designate also drew attention to the significant losses incurred by ECG, with the company losing more than 40% of the power it generates. This figure stands in stark contrast to the 2-4% losses experienced by power companies in other countries, underscoring the urgent need for reform and improvement within Ghana’s power sector.
“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.
