Ghana: Experts Push For Mandatory Prepaid Meters For All ECG Consumers

Ghana’s electricity sector is poised for a significant overhaul, as experts propose the mandatory use of prepaid meters for all Electricity Company of Ghana (ECG) consumers. This initiative aims to tackle operational inefficiencies and revenue losses plaguing the country’s power distributor.¹

According to Dr. Kofi Koduah Sarpong, Chairman of the Structural and Policy Reform Committee, the ECG recovers only about 62% of the electricity supplied to the market, leaving a staggering 38% unaccounted for. This raises concerns about revenue leakage and its impact on tariff determination.

To address these challenges, Dr. Sarpong recommends the widespread adoption of prepaid meters, drawing parallels with the telecommunication industry. He believes prepaid meters will ensure timely revenue collection and reduce losses.

The proposal is part of the committee’s recommendations under the National Economic Dialogue. If implemented, it could mark a significant shift in Ghana’s electricity sector.

“We discovered that the ECG has numerous operational inefficiencies, including high technical and commercial losses. What’s particularly concerning is that only about 62% of the electricity they supply to the market is recovered. The question that arises is, where does the remaining 38% go? If we can recover that 38%, what impact would it have on tariff determination and managing the GH¢1 billion that’s lost annually?

“We believe that the ECG must expand prepaid electricity, and ideally, every consumer should be on prepaid. Just like in the telecommunications industry, where you need to purchase a card or bundle to access services. We think that with prepaid meters installed, we should be able to collect a substantial part of the revenue,” he reiterated.

Source:https://energynewsafrica.com