President-elect John Dramani Mahama has raised concerns about the high 32% commercial and technical losses at the Electricity Company of Ghana (ECG), warning that the situation is severely damaging the country’s energy sector and overall financial stability.
Key Issues Highlighted by Mahama
- 32% Losses: Mahama pointed out that the 32% loss in both commercial and technical areas is unsustainable and threatens the viability of ECG as a utility company.
- Impact on Sector and Economy: He stressed that such losses could derail the country’s progress in addressing debt and fulfilling commitments under the International Monetary Fund (IMF) programme and the debt exchange initiative.
- Urgency of Reform: Mahama called for immediate reforms across the electricity value chain to restore the viability of ECG and secure the energy sector’s future. He warned that without swift intervention, the sector’s instability could negatively affect the broader economy and financial agreements.
“The energy sector can derail everything that we have done with regard to the debt exchange and with regards to the IMF programme because debt continues to pile up there. ECG’s governance is in a very bad way and so they are making commercial and technical losses of more than 32 per cent.”
He emphasized that no utility company can survive with such high losses and still remain viable. He urged immediate reform to address the governance issues within ECG and ensure the company’s financial health.
Mahama’s statements highlight the need for comprehensive reforms within ECG to prevent further strain on the country’s finances and to safeguard the energy sector’s stability.
