Energy Minister-designate orders suspension of ECG payments amid revenue loss concerns  

The Minister-Designate for Energy, John Jinapor, has directed the Electricity Company of Ghana (ECG) to immediately suspend all payments for supplies in a decisive move to tackle inefficiencies and stabilise the country’s power sector.

Mr. Jinapor, speaking on Citi FM on Thursday, January 9, 2025, issued a strong warning to ECG staff, particularly those within the finance directorate, about the serious consequences of disregarding this directive.

“Please don’t, and I mean it, because there are serious consequences if you flout this directive,” Mr. Jinapor stated emphatically. “We need some serious buffers to anchor the system. All those numerous accounts will be closed. They have over 70 accounts, and they cannot monitor that, so we need to reform that sector, and we will reform that sector.”  

Revenue losses and system inefficiencies  

Highlighting ECG’s challenges, Mr. Jinapor revealed that the company is grappling with significant revenue losses, with over 40 percent of generated power not translating into revenue.  

“The challenge of money emanates from inefficiencies. Because if ECG loses over 40 percent of its power generated, no matter what you do, you cannot find a solution. Other countries are doing just about 2-4 percent losses,” he explained.  

Mr. Jinapor also criticised ECG’s fragmented financial operations, citing the existence of more than 70 accounts, which he described as unmanageable. He pledged comprehensive reforms to streamline ECG’s operations, close redundant accounts, and improve monitoring and control mechanisms.  

The Minister-Designate stressed the necessity of involving the private sector as a long-term solution to ECG’s operational inefficiencies and poor revenue collection.  

“We don’t even want to wait until I am sworn in. We want to, as a technical team, work with some consultants with the World Bank and IMF to transparently determine the framework for how we are going to engage in the private sector,” Jinapor noted.  

“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,” he added.  

Mr. Jinapor’s comments align with President John Dramani Mahama’s announcement on January 8, 2025, about ongoing discussions to privatise power distribution in Ghana. The President cited persistent operational inefficiencies, financial mismanagement, and poor service delivery within ECG as reasons for exploring private sector participation.