STRATEGIC ISSUES OF

THE ELECTRICITY
COMPANY OF GHANA

PRESENTATION BY MR. WILLIAM HUTTON-MENSAH

(AG. MANAGING DIRECTOR)
ELECTRICITY COMPANY OF GHANA

OUTLINE OF
PRESENTATION

22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

Introduction
Map of Operational Area
Company Mandate, Vision & Mission
Organizational Structure

Company Vital Statistics

Strategic Issues
Curative Measures (Ongoing Projects)
Expected Benefits
Outlook (Future Plans)
Sources of Funding
Conclusion
22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

1.0 INTRODUCTION

22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

This presentation has two motives. They

are .


To solicit financial and technical

support from Donors and experts of
the Power Sector.

To inform the industry of the impact

of rapid economic growth and its
effects on electricity generation,
transmission, distribution and supply.
22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

The Electricity Company of Ghana

(ECG) ...


Is a private, limited liability company

solely owned by the Government of
Ghana

It operates in six political regions

located in the southern part of Ghana

Map of Operational Area

22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

Has sub divided its operational area

into nine regions and a Sub
transmission Division

Company Mandate ..
 To distribute and supply electric
power to the southern part of Ghana

22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

The Companys Vision is ...............



To achieve customer satisfaction by providing

services which fully meet the expectations of our
customers

Mission Statement ..


To provide quality, safe and reliable electricity

services to support the economic growth and
development of Ghana

Organizational Structure


Organizational Chart
22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

ECG purchases power from VRA and

other IPPs (SAPCL)

It receives the power at 33kV from

GRIDCo at the Bulk Supply Points
(BSPs)

Electricity supply voltages are 11kV,

415V and 240V

Power supply frequency is 50Hz

22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

2.0 CORPORATE
VITAL STATISTICS

22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

10

UNITS

2008

2009

2010

2011

PERFORMANCE INDICATOR
ACTUAL
Energy Purchases

GWh

5,799.4

6,052.2

6,771.29

7,259

Energy Sales

GWh

4,315.8

4,481.5

4,972.36

5,285

Sales Revenue (with levies)

GHm

642.1

661.0

1,006.36

1,273

Sales Revenue (without levies)

GHm

598.3

616.1

974.59

1,174

GH/kWh

0.13

0.14

0.1960

0.23

GH/kWh

0.06

0.06

0.0976

0.09

System Losses

23.7

26.0

24.36

25.01

Staff Strength

No.

5,280

5,390

5,493

5,799

No. of Customers

No.

1,722,245

1,963,958

2,120,564

2,336,286

Revenue Collection

GHm

573.1

668.7

897.77

1,252

Operating Profit / (Loss)

GHm

36.4

32.1

38.57

37.22

GHm

25.1

(20.7)

1.149

17.57

2.4

(0.99)

0.05

0.61

Administrative Cost

GHm

12.0

39.8

38.8

38

Staff Cost

GHm

57.3

64.2

77.1

140

Labour Productivity

GWh/Staff

0.82

0.83

0.91

0.9

Admin. Cost/ Billing

1.88

6.01

3.85

2.95

Staff Cost / Billing

3.52

10.90

7.7

12

Energy Demand Growth

-0.13

3.84

11.9

7.2

Revenue Collection as Ratio of Sales

89.3

101.2

89.2

CORPORATE Average End-User Tariff

STATISTICS
Distribution Service Charge

Net Profit After Tax

FINANCIAL Rate of Return on Average Net
STATISTICS Fixed Assets

OTHER
INDICATORS

98.37 11

PERFORMANCE INDICATOR

UNITS

2008

2009

2010
ACTUAL

Peak Demand
MW
927.5
1,036.0
Average Outage Duration (Urban Hrs/ Customer/
26.58
51.22
Communities)
Year
Average Outage Duration (Rural Hrs/ Customer/
58.24
78.19
Communities)
Year
OPERATIONAL
Average Outage Duration
Hrs/ Customer/
INDICATORS
(Metropolitan Areas)
Year
Average No. of Outages (Urban
No./ Customer/
1,211
1,125
Communities
Year
Average No. of Outages (Rural
No./ Customer/
1,422
1353
Communities)
Year
No. of Bulk Supply Points
No.
26
26
No. of 33/11kV Primary
No.
81
87
Substations
No. Secondary Substations
No.
8,222.0
8,378.0
33kV Overhead Lines
km
12,033.7
12,033.7
33kV Underground Cables
km
281.7
293.1
NETWORK
Total
km
12,315.4
12,326.8
STATISTICS
11kV Overhead Line
km
13,970.8
14,166.9
11kV Underground Cable
km
1,051.8
1,075.3
Total
km
15,022.6
15,242.2
LV Overhead Line
km
1,450,033.0 1,450,973.7
LV Underground Lines
km
5,010.4
5,016.7
Total
km
1,455,043.3 1,455,990.4

2011

1,115.6

1,156.0

65.60

67.9

104.1

185

29

282.0

293

266.0

282

26

26

98

108

8,787.0
12,783.7
1,393.1
14,176.8
14,441.5
1,079.9
15,521.4
1,453,282.6
5,072.6
1,458,355.3

9,550.0
13,461.3
1,462.8
14,924.1
14,946.2
1,084.4
16,030.6
1,469,312.4
5,092.9
1,474,405.3

Notes
System losses from 2010 to 2011 excludes energy consumption of street lights which is estimated at 3% of energy sales
12
The finance data is provisional

3.0 STRATEGIC
ISSUES

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ELECTRICITY COMPANY OF GHANA

(ECG)

13

Financial
Inability to self-finance capital
investment projects

Dependence on Government of
Ghana, IDA, AfDB and other
development
partners
for
financial support
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ELECTRICITY COMPANY OF GHANA

(ECG)

14

Technical
1) Meeting the rapid energy demand
growth of customers (about 7% p.a.
over the past 10years; was 11.5% and
7.2% in 2010 and 2011 respectively)

High Level of Suppressed Demand

Increasing demand of existing customers

Rapid extension of network through rural
electrification
2)

High Technical Losses

ELECTRICITY COMPANY OF GHANA
(ECG)

Currently estimated at abt. 12%

22/08/2012

15

3)

Inadequate Capacity of the Existing

Network (transformers & lines)

4)

Weak & Obsolete Equipment

5)

Supply Availability & Reliability

Challenges

Frequent Network Outages

Poor Customer End Voltages
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ELECTRICITY COMPANY OF GHANA

(ECG)

16

Commercial
1) High customer population growth (abt.
9.8% p.a.)
2)

High Commercial Losses (estimated at abt.

15%)

3)

Inadequate Revenue Collection

Revenue Collection as a ratio of sales for 2011
was 102.2%. This was achieved
through
prepayment metering (currently abt. 28%)

Propose to achieve abt. 105% Collection Rate
ELECTRICITY COMPANY OF GHANA
by end of 2012
22/08/2012 (ECG)
17

3)

Prepayment Metering

Expansion to all urban centers within

2years

Meter monitoring
4. Delayed capturing and billing of new
customers
5.

Vandalism

Theft of network assets (i.e. transformer
oil, cables, conductors, etc.)
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ELECTRICITY COMPANY OF GHANA

(ECG)

18

4.0 CURATIVE ACTIONS

(ON-GOING PROJECTS)

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ELECTRICITY COMPANY OF GHANA

(ECG)

19

A.

Capacity/ Network Expansion

and Voltage Improvement
Projects

B.

Financial Interventions

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ELECTRICITY COMPANY OF GHANA

(ECG)

20

A. SUB-TRANSMISSION & DISTRIBUTION

PROJECTS







Capacity Expansion and Voltage

Improvement Projects
Technical Loss Reduction
Projects
Commercial Loss Reduction
Interventions
Rural Electrification
ICT & Network Modernization
Projects
22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

21

CAPACITY EXPANSION & VOLTAGE

IMPROVEMENT PROJECTS1


Construction of 3no. Bulk Supply Points (BSPs) in

Accra, Kumasi, & Winneba

Construction of 19no. Primary Substations in

Accra (10), Tema (4), Kumasi (2), Koforidua (1),
and Takoradi (2)

Construction of 12no. Switching Stations across

all operational areas (all stations have been
commissioned) Akuse, Kasoa, Bunso Junction,
Kuntunase, Bogoso, etc.

Upgrade of 3no. existing BSPs

 Mallam, Akwatia, & Tafo22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

22

CAPACITY EXPANSION & VOLTAGE

IMPROVEMENT PROJECTS2


Upgrade of 15no. existing Primary

Substations in Accra (4), Ashanti Region (8),
Western Region (2) and Koforidua (1)

33kV & 11kV Lines are also under

construction to interconnect new
substations to existing ones

Conversion of 11kV lines to 33kV in Eastern

Region (TafoKoforidua, Tafo-Suhum)
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ELECTRICITY COMPANY OF GHANA

(ECG)

23

TECHNICAL LOSS REDUCTION PROJECTS



Pilot Implementation of High Voltage

Distribution System (HVDS)
 Madina & Adenta in Accra
 Suame Magassine and its environs (Kumasi)

Shunt Capacitor Compensation

 At substations and on feeders across operational
areas

Reconstruction of the Low Voltage (LV)

network within 4no. markets using aerial
bundled conductors (Asafo Market, Makola,
Tema Comm. One, and Ashaiman Mkts.)
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ELECTRICITY COMPANY OF GHANA

(ECG)

24

COMMERCIAL LOSS REDUCTION PROJECTS



Re-routing of concealed service tails and the

use of meter enclosures to secure meters

Deployment of consultants to monitor service

connections of the 10,000 largest customers

Strengthening of the ECG Loss Control Unit to

monitor energy consumption of customers
areas

Establishment of utility courts to prosecute

energy theft
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ELECTRICITY COMPANY OF GHANA

(ECG)

25

RURAL ELECTRIFICATION


GEDAP - Grid Extension

 ECG will extend the national grid to about
530 rural towns in 26 Districts

GEDAP Grid Intensification

 55,000 new customers are expected to be
connected in 38 Districts

Chinese Contract
 Phase I extended power supply to 417
communities
 Phase II will connect an additional 1,000
communities
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ELECTRICITY COMPANY OF GHANA

(ECG)

26

ICT & NETWORK MODERNIZATION

PROJECTS


Installation of Supervisory Control and Data

Acquisition (SCADA) Equipment on 33kV and
11kV Networks
 Accra is completed
 Works are ongoing in Ashanti and Western Regions
 Works ongoing on some rural networks

Introduction of Live-Line Work in ECGs

operations



Equipment have been supplied

10no. Gangs (of 5persons) will undergo training

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ELECTRICITY COMPANY OF GHANA

(ECG)

27

B. FINANCIAL INTERVENTIONS1


Implementation of the Automatic Tariff

Adjustment Formula

GoG is providing additional financial support to

operate and maintain streetlights

ECG is rigorously employing strategies to

collects all debts

Cash registers have also been computerized.

Development of a common payment platform

to ensure real-time capturing of payments
22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

28

5.0 EXPECTED
BENEFITS

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ELECTRICITY COMPANY OF GHANA

(ECG)

29

EXPECTED BENEFITS1

Provision of enough transformer

and line capacity to meet the rapid
demand growth
Release Suppressed Demand
Provide supply to new customers
Strengthen the Backbone of the sub
transmission network to support rural
electrification and cross border projects
Automated network to support data
acquisition and information flow
22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

30

EXPECTED BENEFITS2

Improve the network by providing
redundancies (alternative sources of
supply)

Reduce system losses to regulated
levels

Improve voltage levels to achieve
230V10%

Reduce outage levels to achieve
regulated levels
22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

31

OUTLOOK (FUTURE PLANS)

A.

Continued Expansion of Sub-transmission and Distribution

Network

B.

Grid Intensification

C.

Rigorously pursue system loss reduction projects

D.

HVDS

Roll-Out the HVDS across all Operational Areas (Pilot ongoing in Madina and
Suame)

D.

ICT (LAN, WAN, SCADA, Degis, etc)

E.

Install Prepaid Meters in all Urban Communities

F.

Complete Roll-Out of Prepayment Metering all across

operational areas
ELECTRICITY COMPANY OF GHANA
22/08/2012

(ECG)

32

6.0 SOURCES OF FINANCE

(INVESTMENT FINANCING)

22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

33

Investments are financed through .



Internally Generated Funds (IGF)

Government of Ghana Support

Donor Funds (IDA, AfDB, DFID, JICA,

SECKO, etc.)

Export Credits

Bilateral Loans/ Facilities (i.e. Bank

Loans, Suppliers Credit, etc.)
22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

34

ECG requires .


USD 200M annually to support capital

investment projects

It is able to generate from its own

sources a minimum of GH30M
annually

The rest are financed by GoG, Donor

Funds, Export Credits, Bilateral
Facilities, etc.
22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

35

ECG is required to .


Implement similar
operational areas

projects

Inject more BSPs, primary and distribution

substations and the interconnecting lines

Strengthen the backbone

transmission network

Make quality electricity services available to

current and potential customers
22/08/2012

across

of

the

ELECTRICITY COMPANY OF GHANA

(ECG)

its

sub

36

But requires .


Financial and technical support to

pursue the projects

All projects are self-financing within a

maximum 6-10 years

Even in the presence of low tariffs

The expected return on investment are

in excess of 20% .
22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

37

7.0 CONCLUSION

22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

38

We
have

presented

ECGs

 Strategic Issues and Curative Actions

 Requirements to revamp and sustain
its distribution network
We seek the support of donors and all
present to implement and address the
challenges associated with electricity
distribution in Ghana.
22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

39

Additionally as support/ investments

are ongoing in .......
 Power Generation and
 Transmission
It is important that distribution is
included to help evacuate the power
to final users or consumers and
cross border projects.
22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

40

Thank you for your

attention

22/08/2012

ELECTRICITY COMPANY OF GHANA

(ECG)

41