The Africa Centre for Energy Policy (ACEP) has raised concerns over the Electricity Company of Ghana’s (ECG) monthly revenue losses, revealing that the company is losing approximately $67 million every month due to unpaid bills.
ACEP attributes these losses to the ECG’s low revenue recovery rate, which currently stands at 57 percent.
Kodzo Yaotse, Policy Lead for Petroleum and Conventional Energy at ACEP, emphasized that improving the ECG’s revenue collection must be prioritized by both the government and the company itself.
He warned that the continued failure to collect these revenues would only worsen Ghana’s growing energy sector debt and strain the Independent Power Producers (IPPs), who are already owed significant sums as part of the country’s legacy energy debt.
“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,” Yaotse said.
ACEP’s call comes at a time when the financial sustainability of Ghana’s energy sector is increasingly under threat, urging swift action to prevent further damage.