Energy Minister-Designate Orders ECG to Suspend All Payments For Supplies; Plans Consolidation of ECG’s 70 Bank Accounts
The Minister-Designate for Energy, John Jinapor, has directed the Electricity Company of Ghana (ECG) to immediately halt all payments for supplies as part of a broader initiative to address inefficiencies and stabilize Ghana’s power sector.
Speaking in an interview on Thursday, January 9, 2025, Jinapor revealed that the directive, endorsed by the Chief of Staff, is aimed at curbing financial leakages within the state-owned utility.
Jinapor issued a stern warning to ECG staff, particularly those in the finance directorate, emphasizing that non-compliance with the directive would result in severe repercussions.
Revenue Losses and Operational Inefficiencies
Jinapor expressed grave concerns about ECG’s financial performance, citing the company’s alarming revenue losses. Over 40% of the electricity it generates remains unaccounted for—a stark contrast to the 2-4% losses reported by peer utilities in comparable countries.
“The challenge of money emanates from inefficiencies,” Jinapor remarked. “If ECG loses over 40% of its power generated, no matter what you do, you cannot find a solution. With $100 worth of power, ECG collects only $60. On top of that, there are numerous deductions for contracts, quality assurance, IT, and other provisions.”
Structural Reforms in Focus
The Minister-Designate also criticized ECG’s fragmented financial system, noting that the company operates over 70 accounts, which hampers effective monitoring and control. As part of his reform agenda, Jinapor vowed to consolidate these accounts and implement financial discipline measures.
“All those numerous accounts will be closed,” he stated. “We need some serious buffers to anchor the system. This sector needs reform, and we will reform it.”
Jinapor underscored the urgency of reforming ECG’s operations, promising measures to enhance efficiency, stabilize the power sector, and improve service delivery for Ghanaians.
Path to Sector Stabilization
These directives form part of a wider strategy to overhaul the power sector, reduce financial waste, and restore ECG’s financial health. Jinapor assured the public that the reforms are critical for ensuring a reliable electricity supply and a sustainable energy ecosystem in the country.
The Minister-Designate’s comments underscore the government’s commitment to tackling inefficiencies and positioning ECG for long-term stability and growth.
