President John Dramani Mahama says Cabinet has approved a new concession model to introduce private-sector participation in electricity distribution to curb losses at the Electricity Company of Ghana (ECG).
Addressing Parliament, the President said ECG continues to record technical and commercial losses of about 25 percent, a situation that undermines the financial health of the power sector.
He said government has operationalised a Single Holding Account for ECG to reduce revenue leakages, improve transparency and strengthen the Cash Waterfall Mechanism.
Under the new model, private operators will support billing, metering and collections. The move is expected to improve payment discipline across the value chain and ensure consistent revenue flow to power producers.
“The most effective way to tackle ECG’s persistent losses is to bring in specialised private-sector expertise to strengthen collections,” the President said.
Source: businesspostonline
