Saturday, 19 July

ECG overhaul yields massive results – John Jinapor

Business
John Jinapor , MP for Yapei-Kusawgu Constituency

Ghana’s energy sector is experiencing a major turnaround, with significant improvements in power reliability, financial accountability, and infrastructural upgrades, the Minister for Energy and Green Transition, Mr John Jinapor has announced.

 In an interaction with the media, Mr. Jinapor stated that ongoing reforms have resulted in the stabilisation of the national grid.

 In line with a directive from the Minister, the Electricity Company of Ghana (ECG) has initiated a comprehensive programme to tackle unplanned outages. this involves detailed mapping of overhead feeders, identifying structural defects and interferences.

 A major rationalisation exercise has seen the termination of about 202 dormant supply contracts flagged for non-performance valued at $227.6 million, £1.17 million, and €4.08 million respectively.

An additional 145 contracts are under further scrutiny, with likely termination if breaches are confirmed.

 The Minister revealed that his Ministry has introduced clear KPIs for ECG’s management at national, regional, and district levels to ensure accountability, adding that ECG has transitioned to a new billing system (Zeus), with the aim of modernising customer billing and commercial processes.

 “The ECG has fully complied with the Cash Waterfall Mechanism (CWM) since February 2025, ensuring timely payments to power generators, fuel suppliers, and GRIDCo”. He noted.

 The Yapei Kusawgu lawmaker revealed that a single holding account has been set up at GCB Bank to support the appropriate disbursement of the Cash Water Mechanism to enhance transparency and equity.

 “In June 2025, ECG recorded its highest-ever monthly collection of GH¢1.678 billion, representing a 47.3% increase over June 2024, between January and June 2025, 63 new communities were connected to the national grid under the government’s accelerated rural electrification programme”. He emphasised.

 In support of the government’s 24-Hour Economy agenda, the Energy and Green Transition Ministry has commenced rehabilitation of grid-connected streetlights across the country to improve public safety and boost nighttime economic activity.

 Cabinet has approved a new Private Sector Participation (PSP) model in electricity distribution through a Multiple Lease Option.

A Steering Committee has been formed to lead the implementation.

 He said the Ministry of Energy and Green Transition, in collaboration with the Finance Ministry and Independent Power Producers (IPPs), are reviewing legacy Power Purchase Agreements (PPAs), emphasising that these reforms are part of a broader vision to secure affordable, reliable, and sustainable energy for all Ghanaians while preparing the sector for future demands.

Source: Classfmonline.com/Cecil Mensah