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The Public Utilities Regulatory Commission (PURC) has raised alarms about the Electricity Company of Ghana (ECG), warning that it may be on the brink of bankruptcy. 



In a letter to government officials, PURC Executive Secretary Dr. Ismael Ackah outlined severe financial challenges not only for ECG but also for other key players in Ghana&#8217;s energy sector, including the Volta River Authority (VRA) and Ghana Grid Company (GRIDCo).



According to PURC, ECG is struggling to meet its financial obligations, with revenue shortfalls leading to delayed salary payments and difficulties in covering administrative costs. 



Despite recent tariff increases and initiatives to boost cash flow, ECG&#8217;s revenues fell short, reaching only GHS 800 million in August 2024—just 42% of what is needed to pay critical bills.



Dr. Ackah emphasized that the problems extend beyond just adjusting tariffs, calling for structural reforms to address systemic issues. He suggested looking to successful strategies from neighboring countries, such as Kenya and Tanzania, which have implemented effective financial reforms.



To improve ECG&#8217;s situation, PURC recommends reducing losses, enforcing fiscal discipline, and conducting thorough audits. The Commission also proposed considering privatization as a long-term solution to ensure financial sustainability.

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ECG Faces Bankruptcy: PURC Warns of Crisis in Ghana’s Energy Sector

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AUTHOR: Perpetual Tweneboah Koduah

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