Minister for Energy and Green Transition, John Jinapor, has outlined significant reforms aimed at restoring financial discipline and operational efficiency at the Electricity Company of Ghana (ECG), as the country navigates challenges within its energy sector.
Speaking in an interview on Citi FM, Mr Jinapor disclosed that he has taken decisive steps to streamline ECG’s financial operations, including the closure of multiple accounts held by the company.
“I’ve closed all of ECG’s accounts except for one single holding account, which we’ve transferred to a commercial bank, GCB. I insisted that it should be transferred to a state bank,” he stated.
This move, he explained, is part of efforts to enhance transparency and ensure proper tracking of funds. According to Mr Jinapor, poor financial management practices in the past, including repeated borrowing through overdrafts to pay Independent Power Producers (IPPs), have worsened ECG’s fiscal position.
“What ECG used to do was to take overdrafts and pay the IPPs every week. So by the end of the month, these overdrafts accrue a lot of interest,” he explained.
Mr Jinapor further highlighted growing concerns from stakeholders in the power sector about ECG’s failure to comply with the cash waterfall mechanism—a framework meant to ensure fair and transparent distribution of revenue within the electricity value chain.
“You heard the IPPs complain. You heard PURC complain that ECG was not adhering to the cash waterfall mechanism,” he said.
To address these concerns, the minister noted that a standing arrangement has now been put in place to ensure timely disbursements.
“We’ve told the IPPs, let’s all be patient. On the 27th, the cash waterfall committee will meet every month and do the disbursement,” he assured.
While emphasizing reform, Mr Jinapor also made it clear that he does not support the idea of selling ECG. Rather, he is advocating for strategic private sector participation in billing and revenue collection.
“We think that the private sector should get involved with billing and collection. Don’t collapse ECG. Don’t sell ECG,” he emphasized.
