The Ministry of Energy has taken a decisive step to address longstanding inefficiencies within the Electricity Company of Ghana (ECG) by signing a performance contract with its top management.

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The move, according to the Energy Minister, John Jinapor, forms part of a broader strategy to confront Ghana's alarming energy sector debt, which stands at GHc67 billion.

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Addressing Parliament on Wednesday, June 4, the minister emphasized the government's commitment to holding ECG leadership accountable for persistent operational failures and revenue leakages.

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Those to participate in the performance contracts include district and general managers across ECG's operational areas.

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“ECG management will also sign performance agreements with the Ministry of Energy so that we can monitor performance throughout the period,” the sector minister stated.

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He noted that system losses and weak revenue collection remain critical issues undermining the sector.

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According to him, these challenges intensified after a previous administration left the office with technical losses at around 22%, a figure that later spiked to nearly 40%.

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However, the sector minister said there are signs of improvement, as losses have begun to decline.

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Mr Jinapor further revealed that the ministry will enforce the Cash Waterfall Mechanism to ensure equitable and transparent distribution of funds within the energy supply chain.

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He also announced upcoming negotiations with the Independent Power Producers (IPPs), urging them to show financial goodwill in support of the sector's sustainability.

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"We believe that they've made a lot from the state, and this is the time for the IPPs to also show some commitment so we can sustain this sector," he said.

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To enhance revenue mobilization and operational efficiency, the government is also exploring partnerships with the private sector, particularly for billing and collection services at the last mile level involving ECG and NEDCo.

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"These are some of the measures we are taking in collaboration with the Ministry of Finance to work around this inherited debt of 67 billion,” Honourable Jinapor added.

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