ECG recoups GH¢2bn from defaulting customers; plans to settle its debt
The Electricity Company of Ghana (ECG) has been able to recoup over GH¢2 billion from its defaulting customers within the last few weeks.
The company in its one-month-long revenue mobilization is eyeing to recover some GH¢5.7 billion from individuals and firms who have failed to pay for power used.
Managing Director of ECG, Samuel Dubik on Face to Face on Citi TV was hopeful his outfit will be able to collect more from defaulters by the end of the exercise this week.
“We have collected in excess of GH¢2 billion. That is less than half [of what we targeted], but we have one more week to go before I am able to give my figures. I will sit down, do an assessment and then see. Why are people not paying? We will disconnect and prosecute.”
The ECG exercise has forced both government and private institutions to cough up some funds to settle outstanding debt to avoid disconnection.
Some institutions were not disconnected from the national grid following the show of commitment to settle their debts.
The ECG is also said to be indebted to some of its partners hence the revenue mobilization efforts.
For instance, Independent power producers (IPPs), the electricity generation companies that control 50 percent of the country’s generation mix, have called on the government to urgently settle its indebtedness to them.
The nine companies said the Electricity Company of Ghana (ECG) owed them about the cedi equivalent of $1.4 billion.
But the ECG boss is also looking at clearing its debts with the amount of money retrieved.
“With the money raised, I will pay everyone who needs some more money. I will pay off my meter manufacturers. I will give the power producers some money. I will give GRIDCo some money. There is a component for Ghana Gas and everyone within the cash waterfall mechanism that needs to benefit will definitely receive”, he stressed.
The Cash Waterfall Mechanism (CWM) is a system created by the government to centralise revenue collection and ensure transparency in what has been collected and who is due what payment.
The system is also to ensure that the off-taker, the ECG, does not use its discretion in paying IPPs, but each must have what it is owed.
Source: Citi Newsroom
