Government Settling it's indebtedness to us has made our balance sheet Stronger than before

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The management of the Electricity Company of Ghana Limited has issued a press release in reaction to the announcement of the payment of Government’s indebtedness to the power company.

In the press release, the company indicated that the Government settling the monies they owe them is a positive intervention and has made their company’s balance sheet stronger than before.

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However, the company made clarifications on issues surrounding the payment as listed below;

A reconciliation exercise was undertaken by ECG with all its suppliers including VRA and the Independent Power Producers (1PPs) as well as the Ministry of Finance (MoF) for the end of year 2019, where all forms of Government debt made up of MDA bills, consumption by Ghana Water Company Limited (GWCL), Government subsidies and shortfall in Public Lighting for the period 2010-2019 was reconciled.
We established that as at end of 2016, total GoG indebtedness to ECG netting off all Government payments was GHS2.63billion.
ECG further realized that between 2017 and 2019 Government of Ghana averagely paid Gh¢ 2billion directly to ECG’s suppliers (ie. VRA, IPPs and GRIDCo) to defray Government of Ghana’s indebtedness to ECG.
Total GoG account as at end of 2019 has a credit balance of GHS 505.8million.
Considering the GoG’s average ill of GHC100million a month, the outstanding GoG credit of GHC505.8million is enough to pay its bill for January to April 2020.
It is also important to add that GoG has also paid an amount of GHC4.14billion directly to various fuel suppliers and power producers and is yet to be credited to GoG’s account under the ongoing reconciliation exercise. Therefore, when the exercise is completed, the amount certified will be a further credit to the GoG account We wish to reiterate that the payments made by GoG were not deposited into EC ‘s account.
Rather, GoG’s direct payments to our suppliers have cleared our books of GoG’s indebtedness after a successful reconciliation with our suppliers.

BELOW IS THE PRESS RELEASE FROM THE ELECTRICITY COMPANY OF GHANA LIMITED