ECG accumulating approximately $67 million each month in unpaid obligations - ACEP

The Africa Centre for Energy Policy (ACEP) has expressed worries regarding Ghana's energy sector's continued significant debt buildup, noting that the nation is accruing roughly $67 million in outstanding debt monthly.

According to ACEP, the Electricity Company of Ghana's (ECG) low revenue recovery rate—which it claims is currently at a concerning 57 percent—is a major contributing factor in this mounting debt.

ACEP's Policy Lead for Petroleum and Conventional Energy, Kodzo Yaotse, stated that raising the ECG's revenue collection rate has to be a top priority for both the government and the organization.

Mr. Yaotse issued a warning, stating that in addition to making matters worse, the inability to collect these revenues will further the financial difficulties of the Independent Power Producers (IPPs), who are owed substantial amounts as part of Ghana's legacy energy debt, according to a report by citinewsroom.com.

“ECG is making 43 percent [revenue] collection rate. That means there is some 57 percent that is not collected that must be paid and that translates into some $67 million every month, which if not paid, would only go up to add to what is already owed to the IPPs in terms of legacy debt. So we have to find a way to be able to ensure that there is optimal revenue collection.”

KA

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