Dumsor will persist if cash flow problems of utility companies are not resolved - IES

The Institute for Energy Security (IES) is projecting prolonged power outages if the cash flow problems of the utility companies are not addressed soon.

According to Institute, the Electricity Company of Ghana and Northern Electricity Development Company (NEDCO) are making power losses of about 30%.

The country in recent times has been facing intermittent power supply, the latest of which was last night, a situation distributors attributed to a fault at the Aboadze Ahomaso transmission line.

But speaking on the situation, Executive Director of the institute, Nana Amoasi VII said the situation will worsen if the monetary problems in the power sector are not checked.

“We see more of a cash flow challenge on the utilities and if it continues, then of course, Dumsor will stay with us for a long time.”

He insists there is this cash constraint because the utility companies, ECG and NEDCO are as distributers are saddled with both technical and commercial losses.

“They [ECG and NEDCO] take the power generated by the producers through the transmitter, GRIDCO and they have to sell this power to consumers. They have high technical loss, they have high commercial losses."