The Africa Centre for Energy Policy (ACEP) has raised concerns over Ghana’s rapidly growing energy sector debt, revealing that the country is accumulating approximately $67 million in unpaid obligations each month.
ACEP attributes the rising debt primarily to the Electricity Company of Ghana’s (ECG) low revenue recovery rate, which currently stands at 57 percent. Kodzo Yaotse, Policy Lead for Petroleum and Conventional Energy at ACEP, emphasized that boosting ECG’s revenue collection should be a top priority for both the government and ECG.
Mr. Yaotse warned that the failure to improve revenue collection would not only worsen Ghana’s debt crisis but also further strain the financial stability of Independent Power Producers (IPPs), who are already owed significant sums due to the country’s legacy energy debt.
“ECG is only collecting 43 percent of its revenues, leaving 57 percent unpaid, which amounts to around $67 million each month,” Mr. Yaotse explained. “If this continues, the debt owed to the IPPs will only grow, adding to the existing legacy debt. We must find a way to ensure optimal revenue collection to prevent further financial deterioration.”