Browsing: Electricity Company of Ghana

“ECG’s governance is in a very bad way, and they are making commercial and technical losses of more than 32%,” he stated.

In its latest staff report, the IMF revealed that Ghana’s energy sector deficit for 2024 exceeded expectations, widening by 0.6 percentage points of GDP and further straining public finances.

The shutdown of three key plants may result in a combined loss of over 1,418 megawatts from the country’s installed capacity.

The coalition argues that ECG’s recent engagement of Fidelity Bank as the “single account” custodian, alongside its large-scale foreign exchange transactions with the bank involving millions of dollars, should have been subjected to public procurement procedures.

“The current situation is extremely disappointing as the IPGs played a major role in working with the government to support its necessary restructuring of the country’s indebtedness in order to qualify for the IMF loans,” continued the letter.

“The growing fiscal burden imposed on the economy by ECG’s poor performance has become a ticking time bomb that can undermine the progress made after the domestic and international debt restructuring to keep Ghana solvent.”

The suspension, according to the Ministry was to allow for extensive dialogue and also to get the buy-in of industry players and labour unions following the grave concerns raised about its impact on consumers and businesses.