John Jinapor, Ghana's incoming Energy Minister, has taken decisive action to tackle the financial difficulties plaguing the Electricity Company of Ghana (ECG).
In an interview with an Accra-based radio station on Thursday, January 9, Mr. Jinapor announced that he had instructed ECG to immediately suspend all payments for supplies as part of efforts to curb substantial revenue losses within the company.
Mr. Jinapor explained that the decision comes in response to the company’s struggles in managing its finances, including overseeing over 70 accounts, which has led to significant financial leakages.
He stressed that such inefficiencies have contributed to ECG losing more than 40% of its generated power, a situation he described as unsustainable.
"If ECG loses over 40% of its power generated, no matter what you do, you cannot find a solution," Jinapor remarked, adding that other countries face much lower power losses, ranging from 2% to 4%.
The Minister-Designate also issued a stern warning to ECG staff, particularly those in the finance directorate, stressing that failure to comply with the directive would result in “serious consequences.”
He emphasized the need for improved control, efficiency, and streamlined operations within the company to stabilize the country’s power sector.
In addition, Jinapor highlighted the importance of private sector involvement in transforming ECG.
He revealed that even before his formal swearing-in, he and his technical team, in collaboration with consultants from the World Bank and IMF, would begin working on a framework to engage private sector participation in the company’s operations.
This, he believes, is essential to improve ECG’s billing and collection systems, thereby enhancing its overall efficiency.
Mr. Jinapor’s remarks underscore his commitment to addressing the financial and operational challenges of the power sector, with the ultimate goal of ensuring more reliable electricity supply for Ghanaians.
Story by: Joshua Kwabena Smith
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