Electricity
Company
Of
Ghana
(ECG)
Company Profile and History
ECG
was
incorporated
in
1963
and
became
a
limited
company
when
shares
were
first
sold
in
the
firm
in
February
1997.
However
the
company
is
still
owned
by
the
government.
The
enactment
of
the
Electricity
Corporation
Decree,
1967
(NLCD
125)
and
the
repeal
of
the
Electricity
Act,
established
the
Electricity
Corporation
of
Ghana
(ECG).
For
the
next
two
decades,
ECG
was
to
remain
the
entity
solely
responsible
for
electricity
supply
and
the
distribution
networks
nationwide.
In
1987,
the
corporation’s
sphere
of
operation
was
limited
to
the
southern
parts
of
Ghana
which
also
had
the
greater
concentration
of
customers.
The
first
government-sponsored
public
electricity
supply
in
the
country
commenced
in
1914
at
Sekondi.
It
was
operated
by
the
Railway
Administration
which
extended
supply
to
Takoradi
in
1928.
Meanwhile,
the
Public
Works
Department
had
commenced
a
limited
Direct
Current
(DC)
supply
in
Accra
during
1922-this
was
immediately
followed
by
a
large
Alternating
Current
(AC)
project
which
commenced
in
1924.
A
small
plant
consisting
of
three
horizontal
single
cylinder
oil-powered
engines
was
installed
in
Koforidua
in
1925.
Also
in
1926,
work
commenced
on
providing
power
to
Kumasi.
During
the
period
1929-30,
limited
electricity
supply
was
extended
to
Tamale
until
a
new
AC
plant
was
installed
in
1938.
The
next
power
station
to
be
established
was
Cape
Coast
which
came
into
being
in
1932.
Subsequent
to
its
takeover
by
the
Electricity
Department
from
the
Public
Works
and
Railways
on
1st
April,
1947,
a
power
station
at
Swedru
was
commissioned
in
1948.
This
was
followed
by
the
installation
of
generating
plants
at
Oda,
Dunkwa
and
Bolgatanga
in
1948.
The
Tema
power
station
was
commissioned
in
1956
with
a
3
x
650
kW
generating
set.
The
Ho
power
station
followed
in
1957.
From
1961-64,
the
Tema
Station
was
extended
to
a
maximum
capacity
of
35,298
kW,
thus,
making
it
the
biggest
single
diesel-powered
generating
station
in
Africa.
Ghana’s
main
electricity
power
source,
the
Akosombo
Dam
has
a
total
Plant
capacity
of
1020
megawatts.
The
country
has
constructed
a
330
megawatts
thermal
plant
in
Takoradi
to
supplement
its
power
supply
needs.
A
560
megawatts
Sunon
Asogli
Power
is
under
construction.
The
first
phase
of
200
megawatts
has
been
completed.
There
is
an
ongoing
project
to
build
another
400
MW
hydropower
plant
at
the
Bui
dam
in
the
Brong
Ahafo
region.
In Country Location
Electro/Volta
House,
28th
February
Road,
Accra,
Ghana:
Telephone:
+233
21
676
761
Telefax:
+233
21
666
262
Services and Products
Electricity
Distribution
and
sales
to
consumers
in
southern
Ghana,
namely
Ashanti,
Central,
Greater
Accra,
Eastern
and
Volta
Regions
of
Ghana.
Number of Employees
5,000
people
Financial Information
ECG earned revenues of $287 million in 2007 and it is estimated to reach $419 million by 2014.
Sales (cedi)
Total sales/Revenue Ratio
Market Share
The
largest
electricity
distribution
company
in
Ghana
Business Objective
To
be
among
the
leading
electricity
distribution
companies
in
Africa
in
terms
of
quality,
safety
and
reliability
Business Model
Government
policies
(from
the
Ministry
of
Energy)
to
a
large
extent
still
determine
the
company’s
strategic
direction.
The
industry
has
recently
been
opened
up
to
allow
independent
generators
to
generate
energy
and
put
it
onto
the
transmission
network;
as
a
result
ECG
now
buys
from
the
transmission
companies,
not
the
generator,
and
then
distribute
to
customers.
ECG
has
grown
and
transformed
to
a
more
effective
distributor
largely
as
a
result
of
foreign
technical
and
financial
assistance
which
has
enabled
the
firm
to
invest
in
various
areas
to
improve
the
quality
of
the
network.
ECG
has
focused
on
building
several
distribution
lines
and
the
installation
of
prepaid
metering.
The
company
is
also
focusing
on
becoming
a
regional
power
trader
to
grow
the
company.
The
Ghana
Energy
Development
and
Access
Project
(GEDAP)’s
development
objective
is
to
improve
the
reliability
of
electricity
supply
and
increase
the
population’s
access
to
electricity.
The
project
has
four
components:
sector
and
institutional
development;
transmission
improvement;
distribution
improvement;
and
access
expansion.
ECG
will
be
responsible
for
the
implementation
of
the
Distribution
component
and
the
‘Intensification’
sub-component
of
the
Access
component
and
thus
will
be
required
to
enter
into
a
subsidiary
loan
agreement
with
the
government.
The
distribution
component
will
support
investments
that
aim
at
improving
the
distribution
business
in
terms
of:
network
upgrade
for
reliable
supply
to
be
measured
by
better
voltage
and
reduced
outage
times
as
well
as
energy
losses;
commercial
character
of
the
business
as
measured
by
enhanced
billing
and
increased
revenues;
and
customer
interface
measured
by
time
required
to
respond
to
complaints,
customer
services,
etc.
The
project
will
also
facilitate
development
of
capacity
in
ECG
in
terms
of
technical,
commercial
and
personnel
systems
and
capabilities.
Ownership of Business
State-owned
(100%)
self
regulatory
monopoly
with
oversight
by
the
Minister
responsible
for
energy
Benefits Offered and Relations with Government
ECG,
which
was
required
to
operate
on
a
commercial
basis
was
mandated
to
purchase
electricity
from
the
Volga
River
Authority
(VRA-State-owned
entity
that
is
responsible
for
generation
and
transmission)
in
bulk
for
distribution.
Governmental
control
of
the
electricity
industry
is
evident
in
the
functions
of
the
ECG
and
the
composition
of
the
governing
board
of
ECG.
Among
the
eight-member
board,
three
were
civil
servants
and
the
chief
executive
of
a
state-owned
enterprise
(SOE).
Thus,
the
Principal
Secretaries
or
holders
of
the
most
senior
civil
service
positions
in
the
Ministry
with
responsibility
for
Energy,
the
Ministry
with
responsibility
for
Finance
as
well
as
the
Chief
Executive
of
VRA
constituted
an
overbearing
government
presence
on
the
utility’s
board.
Despite
Government
efforts
at
financing
the
operations
of
the
ECG,
the
utility
continues
to
incur
huge
debts
which
in
turn
undermined
its
operational
capability.
To
address
the
problems,
the
Government
in
1998
undertook
restructuring
and
recapitalization
of
ECG.
As
part
of
its
macro-economic
restructuring
programme
with
the
World
Bank
and
IMF,
the
Government
agreed
to
continue
to
provide
the
ECG
with
further
debt
relief
annually
up
to
2008,
while
undertaking
to
secure
further
funding
for
the
company
to
undertake
critical
short-term
investments
in
the
company’s
distribution
system.
The
rate
customers
pay
is
not
determined
by
ECG.
It
is
determined
by
a
tariff
set
by
the
government.
The
power
sector
has
been
unbundled
to
create
an
environment
conducive
for
private
sector
investment.
The
private
sector
is
being
encouraged
to
diversify
into
thermal
power
and
enter
into
power
purchase
agreements
directly
with
bulk
power
end
users
such
as
mining
companies.
Over
four
independent
power
producers
(IPPs)
are
already
at
different
stages
of
power
plant
construction
in
Ghana.
Product Development
In
2009
the
ECG
announced
that
it
would
undertake
a
number
of
projects
to
combat
unplanned
outages.
At
Accra
East,
the
company
plans
to
create
a
new
feeder
from
the
Legon
substation
to
link
at
Trinity
College.
This,
according
to
ECG,
is
to
create
flexibility
and
redundancies
in
the
power
supply
arrangements
to
customers
around
East
Legon,
Nmai
Djorn,
Mpeasem
and
surrounding
areas.
The
company
also
plans
to
undertake
similar
projects
in
other
parts
of
Accra
East
to
enable
its
customers
at
GIMPA,
Teshie,
Burma
Camp,
Spintex
Road
and
Kisseman
Junction
among
others
to
enjoy
uninterrupted
power
supply.
The
projects
to
be
undertaken
at
Accra
West
include
upgrading
of
week
and
multi-jointed
cables
from
industrial
area
substation
to
D121
feeder
to
improve
supply
reliability
to
customers
around
North
Kaneshie
and
industrial
area.
The
Dansoman
substation
would
also
be
upgraded
to
improve
supply
reliability
to
customers
around
Bubuashie,
Dansoman,
Gbegbese,
Glepe
and
its
surrounding
areas.
The
utility
company
also
intends
to
among
other
things,
create
two
new
feeders
from
Nsawam
to
create
flexibility
and
redundancies
in
power
supply
arrangements
to
customers
at
Adeiso
and
Dorkorchiwa.
In
Ashanti
West
and
East
ECG
will
amongst
others,
create
additional
feeders,
replace
weak
and
undersized
paper
insulated
cables
and
interconnect
Ejisu
and
Effiduase
feeders
to
improve
power
supply
reliability
in
the
area.
In
the
Western
Region
the
company
will
upgrade
conductors
on
the
Agona-Kadadwen
33Kv
HT
line,
re-insulate
the
CO8
feeder
and
replace
strain
insulators
on
circuit
4
to
prevent
breakdown.
Projects
to
be
undertaken
in
the
Volta
Region
include
replacement
of
HV
woodpole
on
the
Amedzofe
33Kv
feeder
with
steel
pylons
to
prevent
the
incidence
of
damage
of
wood
poles
by
bush
fires.