GhPageNewsGh¢625.34 million declares as bad debt by ECG

Gh¢625.34 million declares as bad debt by ECG

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For the past three years, the Electricity Company of Ghana (ECG) has declared Gh625.34 million (equal to US$80,668,860) as bad debt.

The corporation claims that bad debt is within the company’s policies.

“This is based on the company’s policy on provision for bad and doubtful debts,” ECG stated in its tariff recommendations for the years 2022-2026, which were submitted to the Public Utilities Regulatory Commission (PURC) for review.

In 2019, the Ghana Electricity Company set aside Gh58.51 million for bad and doubtful debt.

This number increased in 2020 and 2021.

A provision of Gh276.50 million was made in 2021, while a provision of Gh290.33 million was made the following year.

The Electricity Company of Ghana explained the reasoning behind such a company policy.

“Majority of these bad debt emanates from demolished structures due to road constructions, relocation of slums, removal of temporary structures, illegal transfer and removal of meters by unscrupulous customers (mostly SHEP areas)”.

ECG claims to be taking steps to guarantee that bad debt are kept to a minimum.

They said they work with Districts and Municipal Assemblies on a regular basis to ensure that information on demolitions, road construction, and other issues is provided to ECG in a timely manner.

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Source:Ghpage

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