Home News ECG inebtedness to suppliers is due to poor debt collection from customers

ECG inebtedness to suppliers is due to poor debt collection from customers

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Abena Osei Asare, deputy Minister of Finance Abena Osei Asare, deputy Minister of Finance

Deputy Minister for Finance, Abena Osei Asare, has revealed that the inability of the Electricity Company of Ghana (ECG), to collect debts owed them by its customers, has amounted to huge debts to its main suppliers including the Ghana National Petroleum Corporation (GNPC), and Ghana Gas.

She disclosed this when she appeared before the Public Accounts Committee on Tuesday, December 14, 2021.

The Committee began Public hearings to consider the Auditor Generals Report on some Ministries Departments and Agencies (MDAs).

When asked what the government was doing to collect the debt, she said the ESLA levy helps in this regard, but it was not enough to settle the debt.

She stressed the Ministry was working with relevant stakeholders to find ways and picked to address the issue.

ECG recently cut power supply to three institutions that together owe the power distribution firm over ¢500,000 in electricity bills.

The institutions are Tema Steel; Elite Company, a subsidiary of the Driver and Vehicle Licensing Authority and the Central University at Miotso in the Greater Accra region.

According to ECG, it will only restore power supply when it is satisfied with the payment terms of the debt from these institutions.

It had also cut power supply to the state oil refinery, Tema Oil Refinery, for its huge indebtedness.

The Minister for Energy, during the inauguration of a new Board for the company last in August 2021 disclosed the company is unable to account for 10% of its revenues.

“For every 1,000 megawatts of electricity sold, 100 megawatts is unaccounted for, and because of that the ECG is always in debt. And of course a company with such a profile cannot make any profit,” he stated.



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