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John Jinapor, the Minister-Designate for Energy, has directed the Electricity Company of Ghana (ECG) to suspend all payments for supplies in a bid to address inefficiencies and stabilise the country’s power sector.
The directive, issued on January 9, 2025, is part of the government’s larger efforts to tackle the significant challenges currently facing ECG, including substantial revenue losses and management difficulties.
In a stern warning to ECG staff, particularly those within the finance directorate, Jinapor emphasised that ignoring the directive would result in serious consequences.
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“I have told the ECG, and this is also an instruction from the Chief of Staff, to seize all payment for supplies, and I mean it. There will be serious consequences if this directive is not followed,” he stated during an interview on Eyewitness News.
The minister-designate highlighted the ongoing struggles of ECG, noting that the company loses over 40% of the power it generates due to inefficiencies, a stark contrast to other countries where losses are typically around 2-4%.
He explained that despite generating $100 worth of power, ECG only collects 60%, with many contracts and deductions complicating the situation further.
Jinapor called for comprehensive reforms within ECG to streamline operations and improve efficiency. He also pointed out that ECG currently manages more than 70 accounts, making effective monitoring and control challenging. As part of the reforms, Jinapor revealed plans to close some of these accounts to improve oversight.
“We need some serious buffers to anchor the system,” he said. “All those numerous accounts will be closed, and we need to reform that sector. We will reform that sector.”
