As part of discussions under the National Economic Dialogue, the Structural and Policy Reform Committee is calling for the mandatory adoption of prepaid electricity meters across Ghana.
The proposal aims to tackle operational inefficiencies and revenue losses faced by the Electricity Company of Ghana (ECG).
Presenting the committee’s recommendations, Chairman Dr. Kofi Koduah Sarpong highlighted ECG’s significant financial challenges, revealing that the company recovers only about 62% of the electricity it supplies. The remaining 38% is unaccounted for, raising concerns over revenue leakage and its impact on electricity tariffs.
Dr. Sarpong stressed that implementing prepaid meters nationwide could ensure timely revenue collection and reduce losses, drawing a comparison with the telecommunication sector, where consumers must pay upfront for airtime or data.
“We discovered that ECG suffers from severe operational inefficiencies, leading to high technical and commercial losses. The fact that only 62% of electricity put into the market is recovered is alarming. Where does the remaining 38% go? If ECG could recover this, it would have a major impact on tariff determination and reduce the financial burden on the sector,” he stated.
To address these challenges, Dr. Sarpong proposed that all consumers transition to prepaid meters, arguing that this system would significantly improve revenue collection and minimize financial waste.
“If you don’t buy a recharge card or data bundle, you don’t get telecom services. The same principle should apply to electricity. If prepaid meters are widely installed, ECG will be able to collect a substantial portion of its revenue,” he added.
The call for mandatory prepaid meters aligns with broader structural reforms aimed at improving efficiency within Ghana’s energy sector. If implemented, the policy could play a key role in addressing ECG’s financial sustainability and stabilizing electricity tariffs for consumers.
