The Electricity Company of Ghana (ECG) has disconnected power supply to the Ghana Water Company Limited (GWL) over a debt of about GH¢ 1 billion owed to the company.

This follows its 12-day nationwide revenue mobilisation operation, which began on Monday, June 16, and is scheduled to end on June 27.

Its target audience includes residential, commercial, industrial, and government institutions with outstanding electricity bills.

Consequently, the power-producing company on Tuesday, June 17, disconnected the country's water supply company over its debt of GH¢999.6 million following a visit by ECG’s task force.

The disconnection was confirmed in a video shared on X (formerly Twitter) which captured an ECG official disconnecting the national water supply company.An official of GWCL was seen questioning the taskforce about the disconnection and on what authority they are doing such.

The ECG has issued a 48-hour ultimatum to GWL to settle its outstanding debt or risk an extended disconnection of power supply to its main pumping stations, which are crucial for nationwide water distribution.

Other state entities, such as the Ghana Broadcasting Corporation (GBC), which was next to have been disconnected after GWL, owe a debt of GH₵3,153,484.98.

Ghana National Gas Authority also owes ECG GH₵ 299,458.59, BUI owes EGC GHS 2,399,711.69, followed by the Ghana VAT service, which owes the company GH₵ 3,153,484.98, NPA owes GH₵252,731.98 among other government institutions.Private entities such as Nyanho Clinic owe a debt of GH₵ 448,942.64

Officials of the Electricity Company of Ghana (ECG) say the disconnection exercise targeting indebted state institutions is part of a broader initiative to tackle persistent non-payment and improve the financial stability of the power sector.

Customers have also been urged to use their regular channels, including the ECG Mobile App, to pay their bills. Download the app from the Google Play Store, or call the ECG contact center at 0302611611 or social media handles for assistance.

Per reports, the ECG is drowning in debt over GHC67 billion. The ECG has on numerous occasions embarked on revenue mobilization exercises but is yet to retrieve all the money owed the company.

Executive Secretary of the Public Utilities Regulatory Commission (PURC), Dr Shafic Suleman, has lauded the Electricity Company of Ghana for improved revenue collection in the first quarter of 2025.

According to him, ECG has collected almost GHC1.4 billion every month since the beginning of the year.

ECG over the years has repeatedly pointed to massive debts owed by both private and public institutions as a major factor in the sector's financial struggles.

Ghana’s energy sector is wallowing in a ballooning debt of about GH¢80 billion, according to President John Mahama, who outlined plans to clear it by 2026 through restructuring and private sector involvement.

The current government inherited GH¢70 billion in energy sector debt from the previous administration. Despite efforts to clear some of this debt, financial challenges persist.

Among the initiatives taken by the current government to deal with this debt was the introduction of the ‘controversial’ GHC1 fuel levy, which charges a cedi on every litre of petroleum products in Ghana, aimed at tackling the country's energy sector debt, which currently stands at $3.7 billion.

A successful rollout could have generated revenue ranging from about GH¢5 billion to GH¢6 billion to support the procurement of liquid fuel.

However, the announcement was met with harsh criticisms from both industry players and commercial transport drivers, who even threatened a sit-down strike if implemented.The International Monetary Fund (IMF), on the other hand, welcomed the implementation of the Energy Sector Shortfall and Debt Repayment Levy that introduces a GHC1 fuel levy.

At a press briefing, Julie Kozack noted that the country stands a better chance of addressing its energy sector crisis with the implementation of the levy.