Dr Mahamudu Bawumia said the installation of ECG pre-paid meters will help reduce the system and revenue losses which eventually piles debt for the Electricity Company of Ghana (ECG).
Dr Bawumia said this will help reduce the system and revenue losses which eventually piles debt for the Electricity Company of Ghana (ECG).
He was speaking at the launch of the Direct Savings and Loans Company in Accra. He explained that the energy sector owes the financial institutions in the country huge amounts due to ECG’s failure to collect monies for the power consumed.
“And so let’s seriously consider this issue of collection of electricity bills, and we want to move to a wholesale adoption of prepaid meters across the country for at least 95% of ECG customers to ensure that even if the ECG doesn’t want to collect we will make sure it collects the bills to keep our financials stable,” he said.
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Dr Bawumia added that even though the government plans “to issue an energy sector bond, even when the bond is issued if we don’t address the fundamentals of collection of electricity bills by ECG, you will end up going back to the same point.”
The World Bank estimates that ECG makes a loss of between 30 and 40 percent of expected revenue from the power it distributes, leading to the huge debt which is currently crippling the sector.