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The Electricity Company of Ghana (ECG) has intensified its ongoing revenue mobilisation exercise by disconnecting two major state institutions, Ghana Water Limited (GWL) and the Ghana Broadcasting Corporation (GBC), from the national power grid over substantial unpaid electricity bills.
This bold enforcement action, carried out on Tuesday, June 17, marks a significant turning point in ECG’s efforts to curb the culture of non-payment among state-owned enterprises—a persistent issue that continues to undermine the sustainability of Ghana’s power sector.
Ghana Water Limited, the country’s main water utility, owes a staggering GH¢999.6 million, while GBC was disconnected for failing to pay an outstanding GH¢3,153,484.98 despite having previously agreed to a structured repayment plan with ECG.
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The scale of these debts, ECG says, leaves the company with no option but to take drastic measures.
Financial survival at stake: ECG’s Justification for the disconnection
At the heart of this exercise lies ECG’s urgent need to enhance its financial viability.
The power distributor has long struggled to fulfil its obligations to power generators and maintain infrastructure due to the accumulation of debts—especially from government institutions.
According to ECG, this is not just about chasing unpaid bills; it’s about enforcing fiscal discipline and sending a strong message that no institution is above the law when it comes to paying for electricity consumed.
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National Water Supply at Risk: The GWL disconnection impact
The disconnection of GWL is particularly alarming given its critical role in Ghana’s water supply chain. The utility operates pumping stations and treatment plants that require constant power to deliver water across the country.
ECG has issued a 48-hour ultimatum to GWL to either settle its debt or propose an acceptable payment plan. If the standoff persists, the prolonged power outage could trigger a national water crisis, affecting millions of homes, hospitals, schools, and businesses.
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The risk of waterborne diseases, coupled with potential disruptions in industry operations, has raised serious public health and economic concerns.
GBC cut off: Public information services under threat
GBC, Ghana’s national broadcaster, also faces service disruptions following its disconnection. Despite negotiating a payment structure, the corporation defaulted, forcing ECG’s hand.
The blackout could impact national news broadcasts and public information flow, though GBC may resort to using generators temporarily. Nonetheless, ECG’s action underscores that even institutions with significant public visibility and influence will be held accountable.