In a decisive effort to stabilise Ghana’s power sector finances, Energy Minister Samuel Abu Jinapor has announced a major restructuring of the Electricity Company of Ghana (ECG), including the closure of all but one of its bank accounts.
Speaking on Citi FM on Monday, May 19, 2025, Jinapor explained that the drastic step was taken in response to ECG’s continued failure to comply with the ‘cash waterfall mechanism’, a system designed to fairly and transparently allocate revenue among key players in the power sector.
“I’ve closed all of ECG’s accounts except for one single holding account, which we’ve transferred to a commercial bank, GCB,” the Minister revealed, insisting the funds be moved to a state-owned bank for better oversight.
Jinapor noted that both Independent Power Producers (IPPs) and the Public Utilities Regulatory Commission (PURC) had raised repeated concerns about ECG’s disregard for the revenue-sharing mechanism, particularly its habit of making unapproved withdrawals and using overdrafts to make weekly payments. This practice, he said, had resulted in ballooning interest charges and growing debt.
Under the new arrangement, ECG will only be permitted to make payments once a month, that’s on the 27th of every month, after the cash waterfall committee meets to decide on disbursements. This move, according to Jinapor, aims to enforce financial discipline and curb reckless spending.
“By the end of the month, these overdrafts were racking up interest. This was simply unsustainable,” he said.
The Minister acknowledged that not all stakeholders have welcomed the reforms, but he stressed that the changes are necessary for the long-term health of Ghana’s energy supply chain. ECG’s debt to IPPs currently stands at GH₵1.79 billion, with total generation-related debt reaching a staggering GH₵3 billion.
Despite the financial strain, Jinapor reassured the public that ongoing talks with power producers such as Karpowership, have helped avoid blackouts or service disruptions. He believes the new system will ultimately benefit electricity consumers by ensuring that power generators are paid consistently and on time, leading to more reliable service delivery.
Looking further ahead, the Minister disclosed that government is considering involving private companies in ECG’s billing and revenue collection processes, not to privatise the company, but to boost efficiency. “We think the private sector should get involved with billing and collection,” Jinapor said. “Don’t collapse ECG. Don’t sell ECG.”
Private firms would operate on a commission basis within designated zones, helping ECG improve cash flow and revenue recovery.
The restructuring, he concluded, is part of a broader effort to overhaul the sector, with plans also underway for a new gas processing plant to reduce power generation costs and improve long-term sustainability.
