ECG recovers over GH₵2.5bn in unpaid bills from customers
The Electricity Company of Ghana (ECG) has made significant progress in recovering outstanding debt from customers, according to recent reports. The nationwide revenue mobilisation exercise, which aims to recover all unpaid bills, has seen the company recover over GH₵2.5 billion of the GH₵5.7 billion debt owed by customers. The exercise, which is set to last a month, is targeting a wide range of customers, including domestic users, businesses, organisations, ministries, departments and state agencies for power already consumed.
The ECG has been working tirelessly to tackle the issue of unpaid bills, with Managing Director Mr Samuel Dubik Mahama stating that the company will not relent until the debt is fully recovered. The company has identified a customer base of 4.5 million, with prepaid and postpaid customers evenly split at 50% each. The ECG has already used GH₵500 million to offset the debt of some public institutions, including the Ghana Armed Forces and Ghana Police Service, with Mr Mahama revealing that the company is considering a GH₵1.2 billion tax offset using the debts of some state institutions to clear tax obligations owed to the Ghana Revenue Authority (GRA).
Despite the ongoing challenges posed by unpaid bills, Mr Mahama remains optimistic that the ECG can be worth GH₵2 billion a month if all consumers pay their bills. This would represent a significant increase from the GH₵125 million a month that the company was making at the time Mr Mahama assumed office. The company was recording over 100% revenue losses at the time, but Mr Mahama implemented end-to-end digitalisation in order to address these losses. This has had a significant impact on revenue, with bulk vendors increasing from 400 to over 1,000, leading to a rise in revenue.
Revenue from quota vending has also risen significantly, with Mr Mahama revealing that revenue from this area rose from GH₵4.6 million to GH₵13 million a day, translating into a monthly increase from GH₵100 million to over GH₵200 million. These efforts have helped to significantly reduce revenue losses, with the ECG making considerable progress in tackling the issue of unpaid bills.
Looking ahead, the ECG remains committed to tackling the issue of unpaid bills and recovering outstanding debt. The ongoing nationwide revenue mobilisation exercise is a key part of this effort, with the company targeting a wide range of customers in order to recover all unpaid bills. While the issue of unpaid bills remains a challenge, the ECG’s efforts to address this issue through end-to-end digitalisation and other reforms have had a significant impact on revenue, and the company remains optimistic about its future prospects.
