Recovering ECG’s losses could strengthen power sector without tariff increases – Ing. Quaye-Larbi

Electrical engineer Ing. Hesford Quaye-Larbi believes the Electricity Company of Ghana (ECG) could bolster the nation's power sector by cutting its technical and commercial losses, without increasing electricity tariffs. Currently, ECG loses roughly 27 percent of the electricity it distributes, due to issues like a poor distribution network, illegal connections, and difficulty collecting revenue.

Speaking to JoyFM's Super Morning Show on the financial struggles of the power sector, Quaye-Larbi said addressing these losses would generate substantial resources for upgrading electricity infrastructure and settling debts to power generators.

Quaye-Larbi was asked if higher tariffs would be needed to fund this improvement. He responded that it wouldn't necessarily be required: "If we're able to collect it, I cannot immediately give the total amount involved, but it will do a lot." He explained that ECG's inability to collect revenue for all the electricity it sells creates a financial gap throughout the power value chain, as the technical and commercial losses also contribute to the problem.

Comparing the situation to a business losing more than a quarter of the goods entrusted to it for sale, Quaye-Larbi stated that the revenue losses impact ECG's ability to pay independent power producers and other suppliers. These suppliers require financing to buy fuel and operate their generation plants. He emphasized that collecting the revenue is crucial for supporting the generation of electricity, as suppliers purchase fuel to run their plants.

The electrical engineer pointed out illegal connections, overloaded transformers, and aging or insufficient distribution infrastructure as factors contributing to the sector's losses. He noted that when transformers and electricity lines exceed their designed capacity, they experience higher losses and are more susceptible to faults causing power outages.

Quaye-Larbi called for stronger revenue collection measures, decisive action against illegal connections, and increased investment in transmission and distribution infrastructure.