World Bank committed to supporting ECG’s efficiency
The World Bank Group is supporting the Electricity Company of Ghana (ECG) to improve its systems to be able to reduce its losses, which are estimated to be at 40 per cent of total production.
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The support includes helping the ECG to install new meters and equipment, all in a bid to help reduce the high rate of commercial losses.
The World Bank Country Director, Mr Henry Kerali, said the project also involved supporting the ECG to reduce the rate of illegal connections and unpaid bills, estimated to cost the power distributor hard-earned resources.
“It is also to identify some of the illegal connections and finally to make sure that everybody pays his or her bill, so that the 40 per cent or so that is lost is reduced to the minimum level,” he said.
Improving the efficiency of the ECG, he said, was very important on all levels, with special emphasis on bill collection and equipment.
“We still need the ECG in particular to improve on its efficiency in several areas — efficiency in bill collection, equipment use, what we call technical losses and also commercial losses.
“These need to be improved, and from our estimation, the ECG is working on that,” he said.
Mr Kerali explained that the commercial losses recorded by the ECG mostly resulted from illegal connections.
Poor revenue collection
Revenue collection for power supplied by the ECG still remains a challenge, culminating in a number of state institutions being indebted to the company.
Mr Kerali said the ECG collected around 60 per cent in terms of revenue for the electricity it supplied.
“Overall, we estimate that the ECG is collecting revenue for just under 60 per cent of the electricity supplied to it. For instance, if it receives 100 Megawatts (MW), the revenue it collects is for just about 60MW, so 40MW is lost for various reasons,” he said.