Minister-Designate for Tourism and MP for Sekondi, Andrew Egyapa Mercer, has revealed that significant progress has been made in the process of outsourcing the billing and collection responsibilities of the Electricity Company of Ghana (ECG) to a private entity.
Egyapa Mercer disclosed that a consultant has been engaged and is collaborating with ECG on the operational details following approval from the cabinet.
During a discussion on the JoyNews national dialogue concerning the power sector, the NPP MP for Sekondi highlighted that the policy has already undergone pilot testing in various regions.
He acknowledged potential resistance from within ECG but emphasised the potential benefits, stating, “Discussions are far advanced and of course typically you will have resistance from our friends in the ECG. But it is something that I believe will help them.
“We have tasked them to put in boundary metres as a first step that they are working on. Of course, the digitization programme that they have also rolled out is also helping with the collections.
“So when they can put the boundary meters in all their operational districts and know the volume of power that is going to every district then you can introduce private sector people to bill and collect the revenue for the power that is coming to that enclave,” he said.
The announcement comes amidst intermittent power disruptions across the country, attributed in part to ECG’s financial challenges in meeting obligations to power suppliers.
Experts point to the financial imbalance at ECG, with the company reporting significant collection losses.
In September 2023 alone, the losses amounted to GH¢2,050,373,143.47, reflecting a concerning trend from previous years.
Furthermore, ECG faces a substantial debt of $1.5 billion, stemming from overdue payments to Independent Power Producers (IPPs) and outstanding electricity purchase bills.
The Deputy Energy Minister stressed the urgency of addressing ECG’s financial losses, expressing confidence that privatizing billing and collection services could bolster revenue streams and facilitate debt repayment.
“This initiative has already undergone successful trials,” he noted, hinting at a potential solution to ECG’s financial challenges.