Energy Minister leads ECG to retrieve debt

THE Minister of Energy, Dr Matthew Opoku Prempeh, has led the revenue protection task force of the Electricity Company of Ghana (ECG) to retrieve more than GH¢1.59 million from two companies in Accra.

The two companies, which owed the power distribution company various sums of money, are the Boston Investment Ltd at Airport City and the Coca-Cola Company Ltd on Spintex Road, both in Accra.

The move, which is part of the nationwide revenue collection exercise the ECG has embarked on to retrieve debts of about GH¢5.7 billion, was for the minister to demonstrate his full support for the exercise.

After the exercise last Wednesday, Dr Prempeh told the press that he fully supported the electricity distributor to retrieve every pesewa owed it.

“This exercise is part of overarching efforts at ensuring that the ECG remains viable to deliver efficient service to consumers,” he said.

The Energy Minister added that his presence on the team was to send a clear signal that the exercise had ministerial backing.

The companies, which had made some payments just before the minister arrived at the scene, also signed cheques to clear their debts right after the minister’s visit.

The management of the companies explained that the delay in the payment of electricity bills was a result of difficulties in processes but gave an assurance that they would work around the clock to pay their bills on time.    

Bill arrears

Dr Prempeh, in his engagements with the management of both companies, bemoaned the situation where companies piled up bills for a very long time and refused to pay.

“As a country, we cannot continue to countenance the attitude of non-payment of bills, among other illegalities and expect optimal service delivery,” he stated.

The Energy Minister added; “The financial capacity of the generator, transmitter and distributor is very much anchored on prompt payment of bills, especially as we work to clamp down on all forms of losses and intra-sector debts.”

He said those three segments of the power value chain were dependent on one another and, therefore, we must work together to clamp down on all forms of losses.

Dr Prempeh stressed that there was no excuse whatsoever for the non-payment of electricity bills and drew an analogy where no one could negotiate with Oil Marketing Companies (OMCs) to get fuel into their cars on credit.

“When you need fuel, you cannot but pay for it to get it, so why can’t you do the same for the electricity you consume?” he asked.

The minister, who is also the Member of Parliament (MP) for Manhyia South, further stated that the unbearable cost of fuel for generators incurred by Ghanaians during the ‘dumsor’ era between 2013 and 2016 was indicative of the luxury of the current power supply.

The Energy Minister, therefore, urged consumers to pay promptly for the value chain to function effectively.

Dr Prempeh also said he expected the ECG to make known the total amount of money it had been able to retrieve for the public to appreciate the reason behind the exercise.

Background

Last week, a Deputy Minister of Energy, Herbert Krapah, declared the government’s unflinching support to the ECG to meet its financial obligations to power generators, including Independent Power Producers (IPPs) for sustainable power supply in the country.

He said, however, that the current focus was to support the company to retrieve its tariff arrears of over GH¢5 billion owed by power consumers.

“The first step is to help the ECG recoup what is out there.

That is one of the ways to help the company to defray some of its debts and make it sustainable.

We have a mechanism to ensure that what is received is distributed fairly and equitably to all the players, including the private entities,” he stated, adding that before the ECG rolled out the programme, the Minister of Energy, his deputies and the leadership of the ministry met with the ECG and finalised the modalities for the implementation.

“The ECG has the fullest backing of the government,” Mr Krapah stated.