The Minister-designate for Energy, John Jinapor, has directed the Electricity Company of Ghana (ECG) to halt all payments for supplies immediately as part of measures to tackle inefficiencies and stabilize the country’s power sector.
Speaking on Citi FM on Thursday, January 9, 2025, Mr. Jinapor issued a stern warning to ECG staff, particularly within the finance directorate, about the severe consequences of ignoring the directive.
“Please don’t, and I mean it, because there are serious consequences if you flout this directive,” Mr. Jinapor emphasized. “We need serious buffers to anchor the system. All those numerous accounts will be closed. They have over 70 accounts, and they can not monitor that, so we need to reform that sector, and we will reform that sector.”
*Revenue Losses and Inefficiencies*
Highlighting the company’s challenges, Mr. Jinapor disclosed that over 40% of generated power is lost without revenue—a stark contrast to the 2–4% losses in other countries. He criticized ECG’s fragmented financial operations, describing the existence of more than 70 accounts as unmanageable, and pledged comprehensive reforms to streamline operations and enhance monitoring and control.
*Exploring Private Sector Solutions*
Mr. Jinapor emphasized the necessity of private sector involvement as a long-term solution to ECG’s inefficiencies and poor revenue collection. He announced plans to collaborate with technical teams, World Bank, and IMF consultants to design a transparent framework for engaging the private sector.
“Especially with the billing and collection. It is either we set good KPIs, go through a competitive tender process, and get the best so that we can improve the systems at ECG. The truth is that we have no alternative but to involve the private sector. Where we have gotten to, it is the only option available,” Mr. Jinapor noted.
His remarks echo President John Dramani Mahama’s January 8 announcement of ongoing discussions to privatize power distribution in Ghana, citing persistent inefficiencies, financial mismanagement, and poor service delivery within ECG as driving factors.