This information was made public when representatives of Bui Power appeared before the Public Accounts Committee, which was reviewing the Auditor General’s Report on the Public Accounts of Ghana-Public Boards, Corporations, and Other Statutory Institutions for the year ending December 31, 2020.
“We have a huge problem with the collection of our receivables. ECG’s indebtedness to Bui Power stood at $386 million as at the end of 2019. And, it is now $614 million,” he stated.
The Electricity Company of Ghana’s (ECG) William Boateng has suggested that prepaid meter users strive to purchase enough for their homes for the holiday season and beyond.
Speaking on Kumasi-based Abusua FM, Mr. Willliam Boateng stated that, “those of our customers who use prepaid meters should try and buy enough for their homes this Christmas and after”.
“Don’t buy with little money and say I will go and buy another during Christmas. That will cause discomfort because we will all go for Christmas break. Those who will be available for sales will be few,” he further cautioned.
“You know how much you consume so do well to buy enough otherwise these vendors may not open their shops for you to purchase power during the festive season. You may also have to join long queues at our various offices which will bring inconveniences,” William Boateng told Kojo Marfo on the show “Abusua Nkommo”.
Mr Boateng however, assured the public that, sales persons at the ECG offices will continue to work during the holidays so that customers who may troop in to their offices can have power to buy.
The arrears, accumulated between 2021 and this year, stood at US$900million as at last May but have now risen to US$996million at the end of September 2022 due to ECG’s inability to fully pay for the power it buys from generation firms.
The debt had dropped significantly to about US$400million at a certain point last year, but has jumped close to the billion-dollar mark.
Meanwhile, between January and September this year the amount due the IPPs was US$1.5billion – of which only US$545million has been paid.
The Chamber of Independent Power Producers, Distributors and Bulk Consumers (CIPDiB), a mouthpiece for the IPPs, had earlier this year lamented that the situation was causing IPPs to record huge forex and interest losses.
“The problem is that looking at the cedi’s free-fall and the time of our reconversion to pay our suppliers or lenders, we end up making a lot of forex losses,” its Chief Executive Officer, Elikplim Kwabla Apetorgbor, told the B&FT.
State-owned ECG, the country’s main power utility, buys electricity from IPPs and others and distributes to consumers in southern parts of the country.
However, due to weak revenue collection, the ECG is in some cases unable to pay for as much as half the power it buys from generation companies like IPPs and state-owned Volta River Authority, leading to a build-up in arrears.
For instance, its annual losses – technical and systemic – are about 30 percent of its revenue: far above the regulator’s allowable loss margin of 23 percent.
As a result, the company loses around GH¢3.2billion yearly, according to Minister of Energy, Dr. Matthew Opoku Prempeh.
If not addressed, it is feared that the arrears could pile up to unsustainable levels.
The arrears, accumulated between 2021 and this year, stood at US$900million as at last May but have now risen to US$996million at the end of September 2022 due to ECG’s inability to fully pay for the power it buys from generation firms.
The debt had dropped significantly to about US$400million at a certain point last year, but has jumped close to the billion-dollar mark.
Meanwhile, between January and September this year the amount due the IPPs was US$1.5billion – of which only US$545million has been paid.
The Chamber of Independent Power Producers, Distributors and Bulk Consumers (CIPDiB), a mouthpiece for the IPPs, had earlier this year lamented that the situation was causing IPPs to record huge forex and interest losses.
“The problem is that looking at the cedi’s free-fall and the time of our reconversion to pay our suppliers or lenders, we end up making a lot of forex losses,” its Chief Executive Officer, Elikplim Kwabla Apetorgbor, told the B&FT.
He said this in May when the cedi enjoyed relative stability and the general economic outlook was somewhat positive, and insisted that companies which have contracted loans were recording huge interest and forex losses because of outstanding payments due them.
State-owned ECG, the country’s main power utility, buys electricity from IPPs and others and distributes to consumers in southern parts of the country.
However, due to weak revenue collection, the ECG is in some cases unable to pay for as much as half the power it buys from generation companies like IPPs and state-owned Volta River Authority, leading to a build-up in arrears.
For instance, its annual losses – technical and systemic – are about 30 percent of its revenue: far above the regulator’s allowable loss margin of 23 percent.
As a result, the company loses around GH¢3.2billion yearly, according to Minister of Energy, Dr. Matthew Opoku Prempeh.
If not addressed, it is feared that the arrears could pile up to unsustainable levels.
It noted: “All 3rd party vending points are fully operational.”
“We already have in place a Help Desk to assist these 3rd party vendors who are having challenges with the appropriate firewall and other information to enable them to send without any hitch,” it stated.
Power consumers across certain parts of the country have, for the past seven days, been unable to purchase power on their prepaid meters because of a technical challenge that affected ECG’s prepaid metering systems.
The Electricity Company of Ghana has been ordered by the Public Utilities Regulatory Commission to compensate customers who were severely harmed by a recent bug in its prepaid vending system.
Following numerous ECG customers’ complaints that the prolonged power supply issue has negatively impacted their way of life and businesses, they are now demanding compensation.
The Commission stated that the direction is “in line with the law and a demonstration of good customer service” in a letter addressed to the Managing Director of ECG.
“In light of the breach of ECG’s statutory obligations specifically sections 11 and 12(1) and (2) of the Public Utilities Act, 1997, (Act 538) and Regulations 41 and 45 of the Public Utilities Regulatory Commission (Consumer Service) Regulations, 2022 (LI 2413), the Commission hereby orders ECG to pay compensation to the affected customers,” the October 4 statement signed by the PURC Executive Secretary, Dr. Ismael Ackah read.
In the past week, scores of ECG customers across the country were unable to purchase pre-paid power from their various vending points.
The statement concluded, “The Electricity Company of Ghana wishes to once again reassure our cherished customers that our staff is working diligently to correct the anomaly and ensure a smooth service provision.
Some ECG customers are unable to top-up electric power credit on prepaid metres for the past three days.
The problem which started on Monday is yet to be fixed.
The technical challenge has affected customers in 10 operational regional areas of the ECG in Volta, Kumasi, Accra, Takoradi, Tema, Cape Coast, Kasoa, Winneba, Swedru, Koforidua, Nkawkaw, and Tafo.
