Energy Minister Shuts Down All but One ECG Account, Retains Single Holding Account at GCB Bank

Government Consolidates All ECG Bank Accounts at GCB to Curb Mounting Power-Sector Debt

ACCRA, 19 May 2025 — The Ministry of Energy and Green Transition has moved every bank account of the Electricity Company of Ghana (ECG) into a single holding account at state-owned GCB Bank PLC, aiming to tighten financial oversight and stem rising liabilities across the power sector.

Energy Minister John Jinapor confirmed the measure in an interview with Citi FM on Monday. He said ECG’s scattered accounts—and its failure to follow the “cash waterfall mechanism,” which distributes power-sector revenue among generators, grid operators and fuel suppliers—had fuelled debts and eroded confidence among industry players.

“I’ve closed all of ECG’s accounts except one,” Mr Jinapor stated. “That single account has been transferred to GCB so disbursements can be monitored through monthly reviews.”

How the new system works

• Single account, monthly disbursement: ECG will be barred from releasing funds until the cash-waterfall committee meets on the 27 th of each month to allocate revenue.

• End to weekly overdrafts: The company’s previous practice of drawing bank overdrafts to make weekly payments to independent power producers (IPPs) racked up interest charges, the minister said.

• Enhanced oversight: The Public Utilities Regulatory Commission (PURC) and IPPs will receive regular statements to verify adherence to the agreed waterfall splits.

Debt snapshot

• ECG arrears to IPPs: GH₵ 1.79 billion

• Total generation-related debt: GH₵ 3 billion

Reaction and next steps

Although some stakeholders have resisted the tougher controls, Mr Jinapor argued the consolidation will “safeguard the long-term health of the power sector” and stabilise electricity supply by ensuring producers are paid on time.

The ministry is also weighing limited private-sector participation in ECG’s billing and collection to boost revenue without outright privatisation. Companies would operate under commission-based contracts in designated zones, the minister said.

Long-term plans include a new gas-processing plant to cut generation costs, while continued talks with operators such as Karpowership have so far averted supply disruptions.

Consumers, Mr Jinapor added, should ultimately see more reliable power delivery as cash flows become more predictable for generators and suppliers.