Incoming Energy Minister John Jinapor Takes Action to Tackle ECG’s Revenue Losses

Incoming Energy Minister, John Abdulai Jinapor, has moved swiftly to address the ongoing financial challenges facing the Electricity Company of Ghana (ECG).

Speaking in an interview on Citi FM on Thursday, January 9, 2025, Jinapor revealed that he had issued a directive for ECG to immediately suspend all payments for supplies, with the goal of curbing significant revenue losses within the company.

Jinapor explained that one of the major difficulties facing ECG is the management of over 70 accounts, which has led to a lack of control and considerable financial leakages. “Because if ECG loses over 40% of its power generated, no matter what you do, you cannot find a solution,” he stated, pointing out that such losses are far higher than the 2-4% losses seen in other countries.

The incoming minister also issued a stern warning to ECG staff, particularly those in the finance directorate, cautioning that there would be “serious consequences” for any disregard of this directive. He emphasized the urgency of streamlining operations within ECG and improving its overall efficiency to ensure the stability of Ghana’s power sector.

Jinapor further highlighted the critical role of private sector involvement in addressing the challenges facing ECG. He disclosed that even before his official swearing-in, a technical team would collaborate with consultants from the World Bank and IMF to transparently develop a framework for engaging the private sector. This engagement, he stressed, would be crucial in improving ECG’s billing and collection systems, ultimately enhancing the company’s operational efficiency.

This decisive approach by Jinapor signals the government’s commitment to revitalizing ECG and addressing the long-standing issues that have hindered the effectiveness of Ghana’s power distribution system.