ECG embarks on operation to recover bills owned by companies
The Electricity Company of Ghana (ECG) has begun an operation to recover electricity bills owed it by companies and industries all over the country.
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The initiative is being executed by a task force made up of officials of the ECG, the Volta River Authority (VRA), the Energy Commission, the Ghana Grid Company (GRIDCo) Limited and the Bui Power Authority, coordinated by the Ministry of Power.
Targeted mainly at special load tariff customers (industries and companies), the exercise has been prompted by the huge sums of money owed by some companies and industries, a development that undermines the revenue drive of the sector.
Some of the defaulters
Briefing the Daily Graphic on the exercise, the leader of the task force, Mr Lucas Kumi, said although the total debt owed by the companies and industries all over the country was not known yet, it was running into millions of Ghana cedis which had been accumulated over a period between six months and two years.
Having started in the Tema region in the Greater Accra Region, he said, the exercise had so far discovered that 20 companies and industries owed more than GH¢38 million within the industrial enclave of Tema alone.
He said the number of companies that owed the ECG in Tema was 350, out of which 20 had just been visited.
The major companies among the 20 owing the ECG are Special Steel Limited, GH¢11 million; Western Steel Forging, GH¢2.5 million; Neel Steel Limited, GH¢78,000; Haya Company Limited, GH¢310,000.
Others are Sarfo Nyame Cold Store, GH¢142,000; Miroc Food Processing Limited, which has three different accounts with the ECG, about GH¢884,000.
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‘We will pursue them’
Mr Kumi, who is an engineer at the Ministry of Power, said some of the companies had been disconnected already with a demand on them to pay their debts, while those that had folded up had been served with final demand notices to start a legal process of debt recovery.
“Some of the companies have also relocated and we are looking for them, while others have folded up. For instance, Neel Steel Limited folded up about three months ago but we have served it with a final demand notice.
“If we have to sell indebted companies’ properties to defray the cost, we will do so, and if any of the companies decide to shut down as a result of the debt, we will pursue them,” Mr Kumi added.
The interferences
He explained that the debts had accrued because the ECG debt recovery management procedure was not fully implemented due to interferences from members of staff, politicians, Members of Parliament and some influential people in society.
“Anytime an attempt is made to recover the debt, some individuals interfere with the process by calling to plead to spare the companies, but we cannot continue like this when we need the necessary revenue to operate.
“This time around, we will not tolerate any interference. We will expose anybody who tries to interfere in this exercise,” he added.
Considering the major setback in the power sector last year, Mr Kumi said, the ECG, with the support of the Ministry of Power, was going all out to recover all debts to reinvest in the sector to sustain and make it more efficient.