Forex losses are a major cause of ECG’s problems

Samuel Dubik Mahama, former managing director of the Electricity Company of Ghana (ECG), has stated that the company's challenges are primarily financial.

Mahama explained that ECG buys electricity in dollars and sells it in Ghanaian cedis, which results in losses due to fluctuations in the foreign exchange rate.

He emphasized that the issue shouldn't be blamed solely on the utility, as forex plays a significant role.

Dubik noted that despite revenue increases, ECG faces under-recoveries due to the changing forex situation. Mahama also mentioned that even if ECG collects 100% of its revenue, it would still struggle due to power purchase agreements, unpaid debts, and infrastructure issues.

He called for a holistic approach to address these financial problems, including a revised business model.