ECG attributes growing costs to cedi depreciation

The Managing Director of the Electricity Company of Ghana, Samuel Dubik Mahama, has attributed the company’s woes to the depreciation of the local currency.

According to him, most of its operations are priced in dollars, therefore, if the dollar rises, it increases the company’s costs.

He also added that ECG pays power producers in dollars and that is another cost that it has to bear.

Appearing before the Public Accounts Committee on August 12 Dubik Mahama said: “Our distribution cost going up is as a result of the forex. Most of our jobs that we do within ECG are all priced in US dollars. The meter, transformer purchase and other intensification jobs are all priced in dollars. The ECG now pays the IPPS and that is also done in dollars from its current jobs.”

He further added that his outfit recognises the challenges that are faced by its customers in the Ketu South Municipality in the Volta Region.

“We have engaged a few communities in the Volta and Central regions, but we need to expand it and also intensify it, what we are realizing now is that most people don’t know that meters expire. They don’t have a long lifespan and it’s something that is not the fault of the customer so it’s something that we have to educate them on,” he said.

According to him, “…now we have moved to meters that are properly electronic so with this when you are charging your phone it sees everything…so every single action you take will reflect and let’s not forget that the PURC has increased tariffs to about 75% and the whole conversation about electricity conservation must be brought back because the mere fact that there is no plug in the wall socket doesn’t mean that you should leave it on because it’s reading.”

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