ECG cannot keep lending electricity for free
Electricity is not a costless promise. ECG buys power, moves it across a network, and must pay suppliers whether a postpaid customer settles on time or not. When a customer who can pay holds back payment, the utility is forced to finance that delay, with working capital, supplier arrears, or ultimately pressure on public finances and other customers. Ghana should stop treating that transfer of…
A charge on overdue credit bills could potentially improve payment discipline in Ghana's electricity sector, but it must be implemented responsibly and in conjunction with better billing practices, according to the International Monetary Fund's 2026 review. ECG, the state-owned electricity distributor, must first ensure that its billing is accurate, delivered promptly, and payments are resolved swiftly.
A modest, transparent interest charge on overdue postpaid balances should be considered as one tool in ECG's revenue assurance strategy. The charge aims to encourage prompt payment and compensate ECG for the time value of money, rather than penalizing customers. However, such a charge should be narrowly defined, operationally feasible, and clearly communicated to customers.
Ghana's Electricity Supply and Distribution (Technical and Operational) Rules, 2005 stipulate that payment on account with interest is permissible for large amounts, but the threshold and rate must be approved by the Power Utilities Regulatory Commission (PURC). ECG should initiate the policy with large commercial and industrial postpaid accounts, then expand to other eligible accounts after pilot testing.
The success of the policy should be measured by cash recovered, reduction in days sales outstanding, and improved customer satisfaction. ECG and PURC must also ensure that government entities budget for electricity and pay within agreed terms to avoid public financing of arrears.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
