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Government’s debt to ECG hits 1.6 billion cedis

Electricity Company of Ghana

Government’s total indebtedness to the Electricity Company of Ghana (ECG) has hit GH¢1,599,800,195 as at March 2017.

The figure increased from the GH¢1,390,966,034 recorded as at December 2016.

This also represents a 15 percent increase in the government’s debts owed the power distributor between 2016 and March this year.

Government subsidy to some electricity consumers of about 655 million cedis, was the highest contributor to the debts owed ECG.

According to the ECG, government’s indebtedness were accounted for by the Ministries, Department and Agencies (MDAs), Ghana Water Company Limited (GWCL) as well as the subsidies provided to some consumers of electricity.

Debts attributable to government’s subsidies to some electricity consumers rose from GH¢573,240,363.58 to GH¢654,574,074.70 between 2016 and March this year.

This went up by 81.3 million cedis representing 14 percent increase.

Also, debts attributable to the Ministries, Department and Agencies went up from GH¢542,798,426 to GH¢621,470,595 as at March this year.

The debt went up by 78.6 million cedis representing an increase of 14.49 percent.

Similarly, debts attributable to the Ghana Water Company Limited went up from GH¢274,927,244 in 2016 to GH¢323,755,252 as at the end of March this year.

This category went up by 48.82 million cedis representing about 18 percent.

Even though the government had made some payments between January and March this year for debts owed by the Ministries, Departments and Agencies, it is yet to make any payments for debts accumulated due to subsidies, this year.

Meanwhile, for the first five months (first 19 weeks) of 2017, ECG has collected GH¢1,974,453,288.10 in debts from consumers.

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This translates into an average debt collection figure of GH¢103,918,594 compared to a target of GH¢130,000,000.

Source: citibusinessnews.com

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