As part of the National Economic Dialogue, the Structural and Policy Reform Committee has called for the mandatory installation of prepaid meters for all electricity consumers in Ghana. This proposal aims to tackle the ongoing operational inefficiencies and revenue losses faced by the Electricity Company of Ghana (ECG).
Dr. Kofi Koduah Sarpong, Chairman of the Structural and Policy Reform Committee, presented these recommendations, highlighting the significant technical and commercial losses incurred by ECG. He revealed that ECG currently recovers only about 62% of the electricity supplied, leaving a concerning 38% unaccounted for, which raises questions about revenue leakage and its impact on electricity tariffs.
To combat these issues, Dr. Sarpong emphasized the need for widespread adoption of prepaid meters, drawing comparisons with the telecommunications sector, where consumers must purchase airtime or data bundles to access services.
“The ECG faces numerous operational inefficiencies, with high technical and commercial losses. Alarmingly, only 62% of the electricity supplied is recovered, while 38% remains unaccounted for. The question then becomes: where is this 38% going? If we were to recover that 38%, it would have a significant impact on tariff determinations and the substantial losses—about one billion—incurred every year,” Dr. Sarpong explained.
He further advocated for prepaid meters, suggesting that just like in telecommunications, consumers must pay upfront to receive services.
According to Dr. Sarpong, installing prepaid meters for all consumers would substantially improve revenue collection and reduce ECG’s losses.
