Policy analyst on Petroleum and Conventional Energy at ACEP, Justice Kodzo Yaotse, says losses incurred by the Electricity Company of Ghana (ECG), as cited in the Auditor General’s report, are likely to increase.

Speaking on Joy FM's Top Story, he said that the Auditor General’s report, which among other things, revealed that procured prepaid meters and conductors worth GH¢59million are still locked up in the company’s warehouse, only covers up to 2019.

He explained that the civil society organisation, Africa Centre for Energy Policy (ACEP) did some work on the ECG and found it’s losses to be growing by 30% of the business.

“Earlier this year, we did some work, on ECG and the losses that they’ve been experiencing for the past few years, and I think the Auditor General’s report only confirms and speaks to the inefficiencies the company has been experiencing. Essentially, we have allowed ECG not to run as a commercial company.”

“It is worrying and it should even be worse by now, because, this report only covers up to 2019. So, last year a lot happened and a lot has happened this year also. This year, we know that the losses are growing up to 30% of the business that they do so, it is getting worse by the day,” Mr Yaotse told Ernest Manu on Wednesday.

His comment comes after the Auditor General’s report uncovered some losses at ECG. 

The Audit Report revealed that ECG lost 2,649.08 GWh, which represents 24.30% of the power purchased from the power-producing companies, to system losses. The report also noted that ECG incurred expenses to the tune of ¢182,576,235.15 as capacity charge by Cenit Energy for the 12 months in 2018.

Among other things, it further noted that electrical materials amounting to GH¢11,581,019.21 were given out on loan to eight beneficiary companies without any specific terms of agreement.

The Auditor General called on the Management to ensure that these materials are returned before they become obsolete or the parties concerned should be made to pay for the cost of materials as considered appropriate.

However, if they fail to do so, the amount involved should be recovered from the officers who engaged in the procurement.

Meanwhile, Mr Yaotse believes the power distribution company is incurring losses because it is not running as a commercial company.

He explained that if ECG was to do business, thus, buy and sell power, as it is supposed to, it will not get away with its inefficiencies.

“Even the government’s own Energy Sector Recovery Programme, estimates that if we don’t turn the tide in this debt accumulation, we could be accumulating over $12 billion by 2023 and that is just two years away,” the policy analyst said.

He added that the government comes in to save ECG from time to time, however, if the company is allowed to run the way it is, “we would only be bleeding as a country.”