Depreciation of Ghana Cedi Contributed to Losses in 2022 ECG Boss Laments

The Electricity organization of Ghana has blamed its losses in 2022 on the depreciation of the Ghana cedi against the dollar.

This was disclosed during a public Accounts Committee sitting in parliament on Monday, August 12, 2024, where the Managing Director of the Electricity organization of Ghana, Mr. Samuel Dubik Mahama, together with the Deputy Energy Minister, Collins Adomako-Mensah appeared before the committee in Parliament.

Among the reasons cited for the loss in revenue during the financial report of 2022 are the various payments made to the Independent Power Producers (IPPS) in foreign currency, the purchasing of meter, transformers also in dollars among other relevant components.

A member of the Public Accounts Committee and Member of Parliament for Buem in the Oti region, Kofi Adams noted that the financial performance of ECG for the year 2022 does not look good as compared to the figures captured in the 2021 report.

According to him, the organization’s distribution expenses rose to 32.6% and administrative expenses also saw an increment of 36.3%.

Explaining the reasons for the figures recorded in 2022, the ECG MD said, “our distribution cost going up is as a result of the forex. Most of our jobs that we do within ECG are all priced in US dollars. The meter, transformer purchase and other intensification jobs are all priced in dollars. The ECG now pays the IPPS and that is also done in dollars from its current jobs.”

Mr. Dubik Mahama further acknowledged the obstacles that confronts the organization but said the organization is expanding its engagements in communities within the regions to educate consumers on reasons for the bills they receive as was the case of residents in the Ketu Constituency who had demonstrated against the ECG.

“We have engaged a few communities in the Volta and Central regions, but we need to expand it and also intensify it, what we are realizing now is that most people don’t know that meters expire. They don’t have a long lifespan and it’s something that is not the fault of the customer so it’s something that we have to educate them on.”

He further explained that “hellip;now we have moved to meters that are properly electronic so with this when you are charging your phone it sees everything. hellip;so every single action you take will reflect and let’s not forget that the PURC has increased tariffs to about 75% and the whole conversation about electricity conservation must be brought back, because the mere fact that there is no plug in the wall socket doesn’t mean that you should leave it on, because it’s reading.”

Kobina Darlington/