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ECG DISCONNECTS GWL OVER 1B GH DEBT

The Electricity Company of Ghana (ECG) has disconnected the power supply to the Head Office of Ghana Water Limited (GWCL) due to unpaid electricity bills amounting to approximately GH¢1 billion. According to Energy Minister John Abdulai Jinapor, GWCL has not made any payments for its electricity consumption over the past seven months, resulting in a significant debt.

The disconnection is part of ECG’s efforts to recover millions of cedis in unpaid electricity bills owed by various categories of customers across the country. The company has warned that customers in arrears should settle their bills immediately or face disconnection.

Background of the Debt

  • The total monthly bill for GWCL is GH¢2.5 billion, but ECG is only able to collect GH¢1.5 billion, leaving a remaining debt of GH¢1 billion.
  • The debt is attributed to several factors, including non-cost-reflective tariffs, poor debt recovery, and technical and commercial system losses ³.

Impact on Water Supply
The disconnection may have significant implications for the country’s water supply, potentially disrupting essential services. GWCL relies heavily on electricity to provide clean and safe water to people in towns and cities. Electricity plays a vital role in the generation, treatment, and distribution of water across the country.

Government Response
Energy Minister John Jinapor has directed ECG to urgently recover the debt to enhance their operations, citing the financial challenges it poses to the ECG. The Minister emphasized that the government cannot continue to subsidize institutions that fail to pay their electricity bills.

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