[ 2017-05-17 ]

Government’s debt to ECG hits 1.6 billion cedis
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.

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

Source - citibsinessnews.com

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