Debt collection

ECG indebtedness to suppliers due to bad debt collection

Abena Osei-Asare, Deputy Minister of Finance

Deputy Finance Minister Abena Osei Asare revealed that the inability of the Electricity Company of Ghana (ECG) to collect debts from its customers has resulted in huge debts to its major suppliers including Ghana National Petroleum Corporation (GNPC) and Ghana Gas.

She revealed it during her appearance before the Public Accounts Committee on Tuesday, December 14, 2021.

The Committee has begun public hearings to examine the Auditor General’s report on selected departments and agencies (MDAs).

When asked what the government is doing to collect the debt, she said the ESLA tax helps in this regard, but it is not enough to pay off the debt.

She stressed that the ministry was working with relevant stakeholders to find ways to resolve the issue.

ECG recently cut the power supply to three institutions which together owe the utility company more than 500,000 in utility bills.

The institutions are Tema Steel; Elite Company, a subsidiary of the Driver and Vehicle Licensing Authority and the Central University of Miotso in the Greater Accra region.

According to ECG, it will only restore the power supply when it is satisfied with the terms of payment of the debt of these institutions.

He had also cut off the power supply to the state-owned oil refinery, Tema Oil Refinery, due to its huge debt load.

The Minister of Energy, during the inauguration of a new board of directors for the company in August 2021, revealed that the company was not able to represent 10% of its revenues.

“For every 1,000 megawatts of electricity sold, 100 megawatts goes unrecorded, and because of that, the ECG is still in debt. And of course, a company with such a profile cannot make any profit, ”he said.

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