Energy Minister-Designate John Jinapor has directed the Electricity Company of Ghana (ECG) to immediately suspend all supply payments as part of reforms aimed at addressing inefficiencies and stabilizing the power sector.
Speaking in an interview with Citi FM on January 9, 2025, Mr. Jinapor highlighted concerns over ECG’s significant revenue losses, which he attributed to operational inefficiencies. He specifically cited the existence of over 70 separate accounts, making effective monitoring and control nearly impossible.
“The core issue lies in inefficiencies. ECG loses over 40% of the power it generates, which is unsustainable. In other countries, power losses are as low as 2-4%. Out of $100 worth of power sold, ECG recovers only 60%, and deductions for contracts, IT services, and other provisions further erode revenues,” he explained.
The directive, which aligns with broader efforts to enhance ECG’s financial stability, came with a stern warning to staff, especially within the finance directorate. Mr. Jinapor emphasized that non-compliance would result in serious consequences.
“This is an instruction from the Chief of Staff. Payments for supplies must cease immediately. Failure to adhere to this directive will attract severe repercussions,” he stated firmly.
