ECG introduces new revenue distribution system

To ensure an effective way of collecting payments for power supplied, the Electricity Company of Ghana(ECG), has introduced a new revenue distribution system. 

The implementation of the system is expected to be carried out across the country to address challenges faced by the outfit as far as collecting revenue for service provision is concerned. 

This follows Cabinet approval for the implementation of the system in the country. According to the Energy Ministry, ECG fails to collect about 20% of bills sent out to customers, making it difficult for the company to pay for the services of power produces, fuel suppliers and other creditors. 

Known as the Cash Waterfall Mechanism System, the new system will see a development of a formula, for adequate distribution of revenue to all stakeholders in the power sector. 

This is expected to bring an end to the situation where some power producers are given priority during payments which adversely affect the revenue of ECG. 

The inability of the ECG to collect appropriate revenue for power consumed and pay its creditors led to a substantial debt of $2.4 billion last year. 

The development has also had an impact on the economy of the country as the power supplier owes many financial institutions. 

The Energy Minister has also ordered the ECG to ensure that, prepaid meters are distributed to over 95%  of customers as a long term solution to the challenge. 

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