The Northern Electricity Distribution Company (NEDCo) has announced plans to embark on a mass revenue mobilisation throughout its operational area.
The exercise, which starts on April 18, 2023 will cover all categories of customers in arrears, including State-Owned Enterprises (SOEs), Ministries, Departments and Agencies (MDAs), Metropolitan, Municipal and District Assemblies (MMDAs).
The electricity distribution company has about GH¢1.2 billion in receivables or debts owed by its customers.
Management has also disclosed that the company owes the Volta River Authority (VRA), the power generator an amount of GH¢1.6 billion and the power transmitter, GRIDCO, about GH¢481 million.
According to management, NEDCo spends on the average, about GH¢120 million monthly to supply power to its cherished customers but recovers an average amount of GH¢85 million monthly from the public.
“At this rate, NEDCo is unable to recoup an average of GH¢35 million monthly. Without interventions like this exercise, NEDCo is doomed! The only salvation is to stem the tide now or never.”
The power distributor in a statement copied to THE CUSTODIAN hinted the closure of its head office and area offices temporarily to allow for the full engagement of all staff including top management to carry out the exercise.
However, the statement added the customer service centres, zonal offices and third-party vendors will remain open to address customer concerns including reconnections.
The management has further entreated customers in arrears to pay their bills immediately to avoid disconnection and payment of reconnection fees.
“We wish to further notify the General Public that, recalcitrant customers who have refused to redeem their indebtedness to the Company after they have been served with Demand Notices will be arraigned”, for prosecution.
THE CUSTODIAN has also gathered that special security arrangements will be put in place to arrest and prosecute anyone who interferes with the exercise.
“Any persons identified to be engaged in illegal connections or reconnections will equally be dealt with in accordance with the law”, the NEDCo management warned.
About NEDCo
The Volta River Authority (VRA) established the Northern Electricity Department (NED) in 1987 to distribute electricity in the then Brong-Ahafo, Northern, Upper East and Upper West Regions of Ghana as part of its 161kV transmission grid extension to the northern parts of Ghana.
In June 1994, the Government of Ghana (GoG) initiated the Power Sector Reform (PSR) programme aimed at bringing efficiency and managerial effectiveness in the Energy Sector to improve service delivery to all consumers.
In pursuant of the PSR, VRA Management, in 1997, registered the Northern Electricity Distribution Company (NEDCO) as a wholly-owned VRA subsidiary, with a Board of Directors to take over the operations of NEDCo.
In May 2012, the VRA Management operationalized NEDCO as a wholly-owned subsidiary.
NEDCo’s current operations cover about 64% of the geographical area of Ghana and is the sole distributor of electricity in the now Upper East, Upper West, North East, Savannah, Northern, Brong- Ahafo, Bono East and parts of Oti, Ashanti and Western North regions.
NEDCO also manages VRA’s electricity supply to some border towns in Burkina Faso, Cote d’Ivoire and Togo.
It was originally developed as an integral part of the larger Northern Electrification and System Reinforcement Project (NESRP), which connected the northern part of Ghana the national electricity grid.
Customer to population has, therefore, grown at an average rate of about 6.3% per annum from less than 20,000 in 1987 to 997,203 as of 2020.
