SHOCKER! ECG Owes Independent Power Producers US$1bn

The Managing Director of the Electricity Company of Ghana (ECG), Samuel Dubik Mahama, has revealed that the ECG owes the Independent Power Producers (IPPs) a staggering one billion dollars.

Mahama made this revelation during an interview on Accra-based Joy FM on Tuesday, March 21, 2023, on the second day of the company’s revenue mobilisation exercise.

To this effect, Mahama explained that the ECG buys power in dollars from the IPPs and sells it to customers in cedis. He said that the company’s ongoing revenue mobilisation exercise is intended to raise funds to defray the indebtedness to the IPPs.

Moreover, the MD said that so far, the company has accrued some GHS25 million from the exercise, and management intends to negotiate with the IPPs for an arrangement to pay the debts weekly.

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Mahama stressed that the ECG intends to pay GHS40 to 50 million to the IPPs to prevent the company from being shut down by them.

He also emphasised that the ongoing revenue mobilisation exercise is not politically motivated and that concerns about it being targeted at some political party’s base are unfounded and should be treated with contempt.

The MD stated that the mass disconnection exercise has become necessary to mobilise much-needed revenue for the ECG to settle its US$1 billion debt to Independent Power Producers. Mahama added that he sees himself as a technocrat and that politicising the work done by his office would be the biggest mistake the company could ever make.

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The revelation of the ECG’s indebtedness to the IPPs is a cause for concern, as it raises questions about the company’s financial viability and sustainability.

The situation also underscores the need for the government to prioritise energy sector reforms to ensure that power supply is reliable and affordable, and to attract more investment into the sector.

In conclusion, the ECG’s US$1 billion debt to the IPPs is a significant challenge that requires urgent attention. The revenue mobilisation exercise, although necessary, is only a temporary measure, and a long-term solution is needed to address the company’s financial difficulties.

The government must work closely with the ECG and the IPPs to find a sustainable solution that will ensure the continued provision of reliable and affordable power to the people of Ghana.