The National Democratic Congress (NDC) has identified poor revenue collection by the Electricity Company of Ghana (ECG) as the key factor crippling the energy sector and exacerbating the country’s erratic power supply.
According to the NDC Manifesto Spokesperson on Energy, Edward Bawa, ECG's inability to collect adequate revenues has hampered its capacity to meet financial obligations to Independent Power Producers (IPPs).
In an interview with JoyNews, he highlighted that in March 2023, ECG collected only GH₵ 394 million of an expected GH₵ 1.6 billion, a revenue shortfall of about 76%.
"In March 2023, the expected revenue they [ECG] were supposed to collect based on the tariff that has been approved was around GH₵ 1.6 billion. The actual revenue they collected was around GH₵394 million, so a shortfall of about 76 per cent. So basically, you cannot be making those payments.
“Can you explain why you have an installed capacity of ASKA being 370 megawatts, let’s say based on their efficiency and other things, they should be doing around 300 megawatts so how come they are running around 100 megawatts? There should be a reason for it … and part of the reason is that they cannot even procure fuel to run the ASKA plant,” he said.
The crisis deepened with Sunon Asogli Power Ltd. ceasing operations due to ECG's $259 million debt. The company explained that the shutdown was necessary as it could no longer sustain operations without the overdue payments being honoured.
Read also: Sunon Asogli Power shuts down due to $259m debt owed by ECG
However, ECG’s acting Managing Director, Ing. David Asamoah, has announced steps to address the crisis, including a shift from monthly to weekly payments to IPPs.
He assured that Sunon Asogli would resume operations in the coming weeks as the company works to resolve the financial challenges.
“Sunon Asogli has gone off because of debts. But the good news about Sunon Asogli is that they are going to be back in the coming weeks because we have almost resolved the issue that made them go off,” he said.
“We started paying them on a weekly basis, not monthly.”
Latest Stories
-
Mpohor Queenmother breaks down complaining about infrastructural challenges
4 mins -
Personal and political interests disrupting power sector – IES
27 mins -
Kumasi to host Joy Prime’s Big Chef Tertiary S2 finals
38 mins -
KOD hints at releasing an album before he turns 50
43 mins -
2024 Election: NDC accuses NPP of printing fake ballot papers
51 mins -
A democracy that fails to solve its own problems is a questionable democracy – Dr Muhammad Suleiman
54 mins -
Our fight against corruption is more talk, less action – Mary Addah
1 hour -
CHRAJ report settles matters against Kusi Boateng – Lawyer
1 hour -
Growing dissatisfaction with democracy demands citizen-centered governance – Mavis Zupork Dome
1 hour -
Ghana’s Democracy: Choices, not elections will drive change – Benjamin Offei-Addo
1 hour -
PRESEC-Legon marks 86 years with launch of groundbreaking AI lab on November 30
1 hour -
Elsie Appeadu of Delft Imaging makes the list of 100 Most Influential People Awards 2024 recipients
1 hour -
Limited citizen participation threatens Ghana’s democracy – Prof. Kwesi Aning
1 hour -
Contractor storms basic school to drive out students from classroom, claiming government owes him
2 hours -
The quest for peaceful election: religious and traditional leaders should be part of election observers
2 hours