Energy Minister Jinapor Outlines Major Reforms to Fix ECG’s Inefficiencies and Reduce Power Losses

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Accra, Ghana – The Minister for Energy and Green Transition, Dr. John Abdulai Jinapor, has detailed a series of ongoing reforms aimed at addressing long-standing structural inefficiencies within the Electricity Company of Ghana (ECG), with a particular focus on reducing high technical and commercial losses.

Appearing before Parliament on Tuesday, November 11, to respond to a question from Prof. Kingsley Nyarko, the Minister said the reforms are part of a broader government agenda to strengthen ECG’s operations, improve procurement accountability, and enhance revenue collection.

“We’ve been implementing a series of reforms since assuming office to streamline activities and procurement practices within ECG’s operational areas,” Dr. Jinapor told the House. “We have realigned their procurement needs and insisted that ECG management strictly adhere to the board’s approved budget ceilings. We will not tolerate contracts awarded outside the board’s remit.”Dr. Jinapor revealed that the ECG management has terminated 202 contracts found to be inconsistent with due process.
He added that a procurement realignment has been undertaken to prioritize essential items such as transformers and cables, rather than stockpiling low-need materials. “Today, ECG has cables that will last 15 years, yet they didn’t have transformers. So we’ve realigned their priorities to procure what they actually need,” he noted.

The Minister also disclosed that the Ministry has put all non-critical government agencies on prepaid meters to reduce unpaid bills and improve cash flow.

Responding to supplementary questions, Dr. Jinapor said the Ministry has procured 200 new transformers and replaced obsolete cables in key areas, including the Kumasi enclave, which had previously experienced frequent outages.

“We’ve injected a brand-new substation in Kumasi and upgraded the cables,” he said. “Compared to the initial months, the situation has improved significantly.”

He also highlighted that ECG has begun upgrading low-tension lines to bundled cables, a measure designed to reduce technical losses and enhance system efficiency.

The Minister further announced the formation of a new committee to review all revenue assurance contracts signed by ECG.

“If we find any contracts not fit for purpose, we will either review, reduce the rates, or terminate them,” Dr. Jinapor stated. “Most of the revenue assurance contracts we inherited have been renegotiated — those charging 4% or 5% have been reduced to around 2.5%.”

In addition, Dr. Jinapor revealed that the government has successfully renegotiated with Independent Power Producers (IPPs), leading to significant reductions in payment obligations, which he described as a “relief for the energy sector’s financial sustainability.”

The Energy Minister said ECG’s revenue collection has improved significantly due to the reforms and tighter financial oversight, noting that 1,500 locked containers of materials have been cleared from the ports, with another 1,000 awaiting clearance.

“By the end of the year, the company’s procurement and operations will be far more efficient than what persisted in the past,” he assured.