The Electricity Company of Ghana (ECG) has been warned that weak revenue mobilisation continues to pose a significant threat to the sector's long-term financial sustainability. The Centre for Environmental Management of the Sustainable Environment (CEMSE) has hailed the GHC6 billion power sector allocation as a step in the right direction.
Sector's Sustainability at Risk
CEMSE has expressed concerns over the Electricity Company of Ghana's (ECG) ability to collect revenue effectively, which is crucial for the sector's long-term financial sustainability. The policy think tank warned that this weakness continues to pose a significant threat to the sector's sustainability.
GHC6bn Allocation Praised
However, the GHC6 billion allocation to the power sector has been welcomed by CEMSE as a positive development. This allocation is expected to support the sector's growth and development. The amount allocated is significant, considering the sector's importance to Ghana's economy.
Revenue Collection Woes
Despite the allocation, CEMSE has warned that weak revenue mobilisation by the ECG continues to pose a significant threat to the sector's long-term financial sustainability. The think tank has called for urgent attention to be given to this issue to prevent a financial crisis in the sector. If not addressed, the sector's sustainability will be at risk.
Way Forward
To address the revenue collection woes, the ECG needs to improve its efficiency in collecting revenue. This can be achieved through effective billing systems, customer education, and a robust revenue collection process. The government and other stakeholders must also play a key role in supporting the ECG in its efforts to improve revenue collection.
The GHC6 billion allocation to the power sector is a step in the right direction, but it is essential that the ECG addresses its revenue collection woes to prevent a financial crisis in the sector. The government and other stakeholders must work together to support the ECG in improving its revenue collection efficiency. If not, the sector's sustainability will be at risk, and Ghana's economy will suffer the consequences.
Source: 3News
