Within the last few weeks, the Electricity Company of Ghana (ECG) has been successful in reclaiming more than GH¢2 billion from its defaulting customers.
In its one-month-long revenue mobilization, the company aims to recover over GH5.7 billion from people and businesses that haven’t paid for the power they’ve consumed.
Within the last few weeks, the Electricity Company of Ghana (ECG) has been successful in reclaiming more than GH¢2 billion from its defaulting customers.
In its one-month-long revenue mobilization, the company aims to recover over GH5.7 billion from individuals and businesses that haven’t paid for the power they’ve consumed.
Managing Director of ECG, Samuel Dubik on Face to Face on Citi TV was hopeful his outfit will be able to collect more from defaulters by the end of the exercise this week.
Read Also: april 24 declared a public holiday for eid-ul-fitr celebration
“We have collected in excess of GH¢2 billion. That is less than half [of what we targeted], but we have one more week to go before I am able to give my figures. I will sit down, do an assessment and then see. Why are people not paying? We will disconnect and prosecute.”
Due to the ECG exercise, both public and private institutions have been compelled to pay their outstanding debt in order to keep their connections.
Following the demonstration of determination to pay off their debts, certain institutions were not disconnected from the national grid.
The ECG is also said to be indebted to some of its partners hence the revenue mobilization efforts.
For instance, Independent power producers (IPPs), the electricity generation companies that control 50 percent of the country’s generation mix, have called on the government to urgently settle its indebtedness to them.
The Electricity Company of Ghana (ECG), according to the nine companies, owes them almost $1.4 billion in cedi.
However, the head of ECG is also considering using the funds recovered to pay off the company’s debts.
“With the money raised, I will pay everyone who needs some more money. I will pay off my meter manufacturers. I will give the power producers some money. I will give GRIDCo some money. There is a component for Ghana Gas and everyone within the cash waterfall mechanism that needs to benefit will definitely receive”, he stressed.
The government developed the Cash Waterfall Mechanism (CWM) to centralise revenue collection and maintain openness over what has been collected and who is owed what payments.
The system is also to ensure that the off-taker, the ECG, does not use its discretion in paying IPPs, but each must have what it is owed.
SOURCE: CITINEWS
