ECG loses about 27% of electricity through technical, commercial losses – Engineer

Electrical Engineer Hesford Quaye-Larbi revealed that Ghana's Electricity Company of Ghana (ECG) loses approximately 27 percent of the electricity it generates for distribution due to technical and commercial issues. Quaye-Larbi explained to JoyFM's Super Morning Show on September 1 that these losses have adversely impacted ECG's finances and its capacity to meet payment obligations to independent power producers (IPPs) and other suppliers within the electricity value chain.

He stated that ECG is unable to collect revenue for all the electricity it sells to consumers, describing it as akin to a business losing over a quarter of the goods entrusted to it for sale. Technical losses occur during electricity transmission and distribution, while commercial losses stem from illegal connections, meter tampering, inaccurate billing, and inefficient revenue collection.

Quaye-Larbi noted that overloaded transformers and distribution lines are key contributors to technical losses. When demand surpasses the capacity of transformers and infrastructure, it results in pressure on the network, potentially causing equipment failure, low voltage, and power outages. He acknowledged illegal connections as another factor, emphasizing that they affect electricity generation, transmission, and distribution.

Quaye-Larbi stressed the need for ECG to reduce losses and enhance revenue mobilization to generate sufficient funds for paying IPPs and other power suppliers. He believed that recovering a significant portion of the estimated 27 percent losses could bolster the power sector without necessitating higher electricity tariffs. He also advocated for increased investment in electricity infrastructure to establish a resilient distribution and transmission system capable of meeting burgeoning demand.