The Executive Director of the African Centre for Energy Policy (ACEP), Benjamin Boakye, has called on the government and the Electricity Company of Ghana (ECG) to institute measures to deal with power theft. According to him, if the issue of power theft is not addressed, it is going to be much more difficult for ECG to meet its payment obligations to Independent Power Producers (IPPs).
“If you look at how much the government is supposed to put in cumulatively every month, it’s about GH₵250 million to be able to offset the inefficiencies in the energy sector. And all these payments are being made by the people of Ghana. So what that simply means is that once power is generated, transmitted and sent to the distribution company, ECG, almost half of what they’re supposed to recover cannot be recovered,” said Mr Boakye, according to a Myjoyonline.com story.
The Chronicle is aware that sometimes the Ministry of Finance has to intervene on a monthly basis, to the tune of about GH₵250 million, to be able to offset the inefficiencies in the energy sector. What this means is that the money that we need to be able to pay other commitments like roads, health infrastructure and education is being used to pay electricity bills.
Mr Boakye added that the ECG is engaging in optics rather than coming up with pragmatic solutions to deal with the challenge and to make sure that the company can live up to its responsibilities and save the nation from this leakage.
Power theft, as highlighted by Boakye, presents a significant obstacle to the financial viability of the energy sector. With nearly half of the revenue expected from electricity sales being lost to theft, the burden falls on the government to bridge the gap, diverting much-needed funds from essential sectors. This diversion not only strains the government’s fiscal resources but also undermines its ability to meet its obligations to Independent Power Producers (IPPs) and also to invest in critical infrastructure.
Moreover, the prevalence of power theft perpetuates a cycle of inefficiency within the energy sector, eroding public trust and confidence in the utility provider. As Mr Boakye aptly noted, the situation suggest that ECG is more focused on optics than implementing effective solutions to combat power theft.
This failure to address the root causes of power theft not only compromises the financial sustainability of the utility company, but also undermines its ability to deliver reliable and affordable electricity services to consumers.
It is imperative that the government and ECG take decisive action to address power theft and safeguard the integrity of Ghana’s energy sector. This requires a multifaceted approach, including the implementation of robust metering systems, enhanced monitoring and enforcement mechanisms, and public awareness campaigns to educate consumers about the consequences of theft.
Additionally, greater collaboration between stakeholders, including government agencies, law enforcement and community leaders is essential to effectively combat this pervasive problem.
Addressing power theft is not only a matter of financial sustainability but also a moral imperative to ensure equitable access to electricity for all citizens. By prioritising efforts to curb theft and improve operational efficiency, Ghana can build a more resilient and inclusive energy sector that serves the needs of its people and drive sustainable economic growth.
The Chronicle agrees that the issue of power theft demands urgent attention and concerted action from all stakeholders. As a nation, we must work together to tackle this challenge head-on and pave the way for a brighter and more prosperous future for all.
