Prepare for possible dumsor this festive season - GRIDCo warns citing ECG indebtedness

Employees of the Ghana Grid Company (GRIDCo) are warning that the infamous ‘dumsor’ (intermittent power outages) could make a return this Christmas if immediate financial relief is not provided to the company.

GRIDCo staff are placing the blame squarely on the Electricity Company of Ghana (ECG) for their dire financial situation, citing a failure to pay for services rendered.

The Senior Staff Association’s National Chairman, Wisdom Kojo Adenyo, conveyed these concerns in a letter addressed to the Minister of Energy, the Board Chairman, and the Chief Executive of GRIDCo.

According to Adenyo, the Cash Waterfall Mechanism, which facilitates payments to industry players, is non-functional, exacerbating GRIDCo’s financial distress.

The staff alleges that ECG, their major customer, owes GRIDCo over GH₵100 million per month, with only 18% to 25% of the amount being irregularly paid.

“The chunk of the revenue sits in our books without any plans to redeem the same. This situation has made it difficult to pay suppliers, procure the requisite tools, materials, and spares, all of which adversely affect the business,” the letter stated.

Sources reveal that ECG is in arrears with several state-owned entities, including the Ghana National Petroleum Corporation (GNPC), Volta River Authority (VRA), Ghana Gas, and Independent Power Producers (IPPs). The outstanding debts amount to millions of dollars, with VRA resorting to selling power to Togo and Benin to offset its financial challenges.

Ghana Gas, VRA, and GRIDCo, all state-owned entities, are reportedly unable to pay their vendors, leading to a crippling effect on their operations. As a consequence, there are growing concerns that Ghana Gas may struggle to pay Tullow for the raw gas supply, potentially leading to a disruption in power generation. If left unaddressed, this could result in reduced power supply by ECG, triggering widespread power outages.

The GRIDCo staff’s letter concludes with a stern warning, “We cannot guarantee smooth power supply, especially during this festive season and going forward if the Cash Waterfall Mechanism is not restored immediately or other means of financial support provided for GRIDCo.”

Ghanaians are now anxiously awaiting a resolution to this financial crisis to ensure a festive season free from the specter of ‘dumsor.’