ECG loses US$67 million every month - ACEP

The Policy Lead for Petroleum and Conventional Energy at the Africa Centre for Energy Policy (ACEP), Kodzo Yaotse, has stated that the Electricity Company of Ghana (ECG) is recording a revenue loss of about US$67 million every month.

He said the power distribution company's failure to collect this revenue will add to the compounding debt owed to Independent Power Producers (IPPs).

This rising debt, according to Kodzo Yaotse, can be attributed to the low revenue recovery rate of the Electricity Company of Ghana (ECG), which currently stands at 57 percent.

“ECG is making a 43 percent revenue collection rate. That means there is some 57 percent that is not collected, which translates into about $67 million every month. If not paid, this amount would only add to the existing debt owed to the IPPs in terms of legacy debt. So we have to find a way to ensure optimal revenue collection,” he stated.

Speaking at a media capacity-building workshop in Kumasi, the policy lead of ACEP indicated that the government owes IPPs an amount of US$1.2 billion.

This amount has been tagged as "legacy debt" as it accumulates over time.

Despite government attempts to negotiate haircuts on these debts, IPPs remain steadfast in their demands for full payment.

They argue that they are not being paid according to the power supplied.

SA/OGB

Watch the latest edition of BizHeadlines below:



Ghana’s leading digital news platform, GhanaWeb, in conjunction with the Korle-Bu Teaching Hospital, is embarking on an aggressive campaign which is geared towards ensuring that parliament passes comprehensive legislation to guide organ harvesting, organ donation, and organ transplantation in the country.

Click here to follow the GhanaWeb Business WhatsApp channel