ECG INCURS GH¢9M LOSS (P.31) 19-09-08

Story: Kofi Yeboah

THE Electricity Company of Ghana (ECG) is running at a huge loss by way of the consumption of electricity and the maintenance of streetlights, incurring more than a GH¢9 million loss last year.
The deficit is the result of low revenue collected from the insignificant street light levy of 50 pesewas (old currency) paid by electricity consumers.
The company collected only GH¢279,245 from the street light levy in 2007, out of a projected revenue of GH¢9,321,479.71, thus incurring a loss of GH¢9,097,683.71.
Although the figure was not as bad as the GH¢11,048,150.35 deficit incurred in 2006, it was nevertheless worse than the GH¢5,079,823.21 loss incurred in 2005.
The Director of Operations of the ECG, Mr A. T. Barfuor, told the Daily Graphic that the situation was posing immense financial difficulties to the company and, therefore, called for a review of the levy.
He said with the current expansion of street lights across the country, it was imperative to increase the levy, otherwise the company could no longer cope with their maintenance.
In 1994, the current street light levy was fixed at 50 pesewas, 80 per cent (40 pesewas) of which went into consumption, while the remaining 20 per cent (10 pesewas) went into maintenance.
Mr Barfuor said in 2007, a total of GH¢279,245 was collected from the street lights levy, out of which GH¢223,796 went into consumption, with GH¢55,949 going into maintenance.
He said although the total levy collected for the maintenance of streetlights throughout the country in 2007 was GH¢55,949, the cost of maintenance of the 26 ceremonial streets alone was GH¢69,974.26, leaving a deficit of GH¢14,025.26 for the ECG to bear.
Mr Barfuor said the only way to address the problem was to increase the levy either to 3Gp or put a percentage on the electricity tariff, such that anytime there was an increase in tariffs, the street light levy would also increase.
He said a review of the levy would require the passage of a Legislative Instrument (LI) by Parliament, adding that the ECG had presented a proposal to the Ministry of Energy on the issue but he could not tell how far the ministry had gone with it.
Mr Barfuor said owners of vehicles that knocked down poles for street lights were supposed to repair them but about 70 per cent of the culprits bolted, leaving the maintenance burden on the ECG.