President-elect John Dramani Mahama has raised alarm over the deteriorating state of the Electricity Company of Ghana (ECG), citing unsustainable technical and commercial losses exceeding 32%.
Describing ECG’s current governance as deeply flawed, Mahama expressed concern over the impact of these losses on the nation’s energy sector. “ECG’s governance is in a very bad way, and they are making commercial and technical losses of more than 32%,” he stated.
Mahama warned that if the challenges facing the ECG are not addressed promptly, they could undermine key economic recovery initiatives, including the debt exchange programme and the ongoing International Monetary Fund (IMF) agreement.
“The energy sector can derail everything that we have done with regard to the debt exchange and the IMF programme because debt continues to pile up there,” he cautioned.
Highlighting the urgency of the situation, Mahama stressed the need for reforms across the electricity value chain to ensure the sector’s sustainability. He noted that no utility company could remain viable while incurring such significant losses.
“No utility company can survive with 32% of technical and commercial losses and continue to be a viable utility,” Mahama remarked.
The President-elect called for decisive action to stabilize the energy sector, reduce losses, and secure Ghana’s energy future. He emphasized that reforms were essential to safeguard the sector and sustain its contribution to the nation’s development.
With these remarks, Mahama signalled his administration’s commitment to addressing the challenges in Ghana’s energy sector as a priority upon taking office.
