ACEP warns of growing $67 Million monthly debt in Ghana’s Energy Sector due to ECG revenue shortfalls
The Africa Centre for Energy Policy (ACEP) has raised alarm over the mounting debt in Ghana’s energy sector, revealing that the country is accumulating around $67 million in unpaid obligations each month. This growing financial burden is primarily attributed to the low revenue recovery rate of the Electricity Company of Ghana (ECG), which currently stands at just 57 percent.
Kodzo Yaotse, Policy Lead for Petroleum and Conventional Energy at ACEP, emphasized the urgent need for the government and ECG to prioritize improving revenue collection. He warned that the failure to address this issue would not only worsen the nation’s debt but also exacerbate the financial challenges faced by Independent Power Producers (IPPs), who are owed significant sums as part of Ghana’s longstanding energy debt.
“ECG is only collecting 43 percent of its revenues, leaving 57 percent uncollected,” Yaotse noted. “This amounts to $67 million each month in unpaid obligations, which, if unresolved, will continue to add to the legacy debt owed to the IPPs. It’s crucial that we find a way to ensure optimal revenue collection.”
ACEP’s concerns reflect the growing need for structural reforms to safeguard the financial health of Ghana’s energy sector and prevent further debt accumulation.
