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ECG declares Gh¢625.34 million as bad debt in three years

The Electricity Company of Ghana (ECG) has declared Gh¢625.34 million (the equivalent of US$80,668,860) as bad debt for the past three years.

The company says bad debt is in line with the company’s policy.

“This is based on the company’s policy on provision for bad and doubtful debts,” ECG said in its 2022-2026 tariff proposals submitted to the Public Utilities Regulatory Commission (PURC) for consideration.

The Electricity Company of Ghana in 2019 made a provision of Gh¢58.51million as its bad and doubtful debt.

This figure shot up in 2020 and 2021.

In 2021 a provision of Gh¢276.50 million was made whiles in 2021 a provision of Gh¢290.33 million was made.

Explaining the brain behind such a company policy, the Electricity Company of Ghana said “Majority of these bad debt emanates from demolished structures due to road constructions, relocation of slums, removal of temporary structures, illegal transfer and removal of meters by unscrupulous customers (mostly SHEP areas)”.

ECG says it is taking steps to ensure these bad debts are minimized.

They indicate that it regularly engages Districts and Municipal Assemblies to ensure that information on demolishing exercises, road constructions, etc. are communicated to ECG in good time to avoid this problem.

 

 

 

Source: MyNewsGh

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