The Ghana Grid Company (GRiDCo) has disclosed that it is presently unable to expand its transmission lines due to its high indebtedness.<\/p>\n
As it stands, GRIDCo is owed over GHc 600 million and the Electricity Company of Ghana (ECG) is a major contributor to this debt, according to\u00a0Chief Executive of GRIDCo, William Amuna, who was speaking before Parliament’s Public Accounts Committee on Monday.<\/p>\n
[contextly_sidebar id=”DtUeKOrLF6udjRLHsy1ZqcOCgcZRVaOy”]”The Electricity Company of Ghana continues to build up the debt and unfortunately, we are unable to disconnect them because of you disconnect ECG, it will have a domino effect\u2026 virtually everything will come to a stall.\u201d<\/p>\n
GRIDCo can opt to disconnect consumers, as happens in its dealings with mining companies when payment is not coming, but in the case of ECG, it has to resort to \u201cother means to get the monies back.\u201d<\/p>\n
The company is, therefore, looking forward to the speedy implementation of the energy sector refinancing module that “will ensure that everybody within the energy sector is paid whatever is owed.\u201d<\/p>\n
The Volta Aluminum Company (VALCO) also owes GRIDCo in excess of $20 million though \u201cthey are operating one port line so it is not much of problem to us,\u201d Mr. Amuna said.<\/p>\n
“So we are just banking on the [Energy] ministry coming out with this new arrangement [energy sector refinancing module] to ensure that we get our monies.\u201d<\/p>\n
The Director of Finance at GRIDCo, Isaac Kwame Akesseh also explained that the energy sector refinancing module.<\/p>\n
“Currently there is an ongoing refinancing where the government is trying to refinance the energy debt stock and as part of the arrangement, there is also going to be put in place a cash waterfall arrangement; where an independent body will do the collection and does the allocation to the various entities as agreed [via a formula].\u201d<\/p>\n