Electricity Company of Ghana (ECG) Faces GH¢25 Million Losses During Rainy Days, Says Managing Director

The Managing Director of the Electricity Company of Ghana (ECG), Samuel Dubik Mahama, has revealed a significant financial challenge the company encounters whenever it rains in the country. According to Mr. Mahama, ECG suffers a substantial loss of GH¢25 million on days with rainy weather due to decreased power consumption.

In an interview with Evans Mensah on JoyNews’ PM Express on October 30, 2023, Samuel Mahama shed light on the financial burden imposed by inclement weather on the nation’s power distributor. He explained, “Before the rainy season began, ECG was averaging between GH¢40 to GH¢50 million in daily revenue. Now, on any rainy day, we experience a staggering drop of GH¢25 million.”

Acknowledging the prolonged rainy season in Ghana this year, the MD expressed his concern, stating, “We plan our operations with the same tariff throughout the year. Unlike some parts of the world where tariffs vary with weather conditions, we have a flat tariff that doesn’t account for weather-related consumption fluctuations.”

Mr. Mahama elaborated on the impact of rainy weather on electricity consumption, saying, “During cold periods, people tend to consume less energy, primarily because they opt for natural ventilation rather than air conditioning or heating. This conservation trend affects our revenue.”

He also highlighted the operational challenges posed by rainy weather, which hinder activities such as meter reading and revenue collection. However, he assured that ECG would eventually collect the owed amounts from customers, despite the challenges faced on rainy days.

In summary, Samuel Dubik Mahama, the Managing Director of ECG, revealed that the company experiences a significant financial setback of GH¢25 million on rainy days due to reduced power consumption. This loss is exacerbated by the flat tariff structure in Ghana, which doesn’t account for seasonal consumption variations. Despite the operational challenges, ECG remains committed to collecting the owed revenue from its customers.