How ECG can prevent financial losses in distribution network – Pru East MP explains

A former Power Minister, Dr. Kwabena Donkor has suggested that the Electricity Company of Ghana (ECG) increase its efficiency standing in order to curtail financial losses being incurred on the company.

According to him, these financial loses are as a result of technical and commercial anomalies which occur during power distribution thereby impacting on the profit making of the company.

Speaking in an interview on with Accra-based JoyFM, the Pru East lawmaker explained that “the way out is first ECG has to improve its efficiency. ECG losses about 30% of power they buy either in technical loses or commercialise loses and their margin is not 30%,”

“Very few industries in this country will have a margin of 30%. So, if you are losing 30% of what you buy, you are definitely not going to be able to pay for it in the long term,” he added.

Meanwhile, the Independent Power Producers (IPPs) had earlier threatened to cut power supply from the national grid from July 1, 2023 if government fails to honor an outstanding payment owed to them amounting to $1.78 billion.

Government had planned to engage in negotiations with the IPPs to restructure the debt but the move was quickly rejected by the power producers.

MA/FNOQ

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