The recent replacement of electricity meters by the Electricity Company of Ghana (ECG), even when existing meters are reportedly functional, could be linked to procurement and operational issues.
While official reasons may involve upgrading to newer technologies or standardizing systems, reports suggest there could be more to this situation, including potential procurement irregularities and higher tariffs on newly installed meters.
ECG might be upgrading from older meters to newer, smarter, or prepaid meters as part of their modernization efforts. These new meters are often more efficient in monitoring electricity usage, reducing meter tampering, and improving billing accuracy. Prepaid meters allow for better revenue management since customers pay upfront for the electricity they use. ECG has stated in the past that smart meters help minimize revenue loss from power theft or inaccurate billing.
Customers experiencing higher tariffs with newly replaced meters may be facing issues due to recalibration or the introduction of new tariff structures tied to those meters. The quick depletion of credits could suggest that these new meters have different consumption tracking mechanisms or higher baseline rates.
Additionally, ECG has faced financial challenges, including unpaid debts. Replacing meters might be part of a larger strategy to tighten control over energy usage, curb energy theft, or increase revenues. Newer meters are often more advanced, providing better monitoring and reducing opportunities for bypassing electricity payments. ECG might also cite the need for upgrading to smart or prepaid meters as part of a digitalization effort.
This would also allow for more accurate billing, remote monitoring, and easier top-up processes. However, these upgrades might come at the cost of higher tariffs or increased customer dissatisfaction if not communicated clearly. If these new meters are not installed correctly or have system bugs, it could cause them to over-report energy consumption.
However, ECG’s External Communications Manager, Ms. Laila Abubakari who spoke to The High Street Journal is attributing the move from ECG as a technical improvement in the company’s operations. She also justified the unending complaints of high tariffs the new meters run on.
“ECG is changing most of the meters in the system to be compliant with its new meter management system. If customers do not trust the consumption on the meter, they may report to the regulator for independent testing or whatever remedy there is available,” she noted.
On the issue of some customers not being able to acquire new meters for their apartments and office, Ms. Abubakari debunked that notion stating that it “depends on where these customers you’re referring to are. New service connections without poles and other materials in Greater Accra are readily available. Those who need poles are the ones who may delay. For other regions, I don’t have information yet.”
There have been past reports and allegations involving ECG in procurement scandals. It is possible that the replacement of meters could be linked to procurement contracts that push for the installation of new meters.
In some instances, these contracts might stipulate widespread replacements as part of their terms, whether or not the existing meters are faulty. The company reports a success of scaling up its operations from installing 2,000 meters per month to an impressive 100,000 meters monthly in just over 2 years. Could it be due to the fact that it intends to clear up any mess from procurement breaches in the past years?
According to a report by the Auditor-General, ECG signed 50 contracts worth over $145 million between 2016 and 2021 without adhering to the Public Procurement Act. The breaches include failing to explore alternative meter suppliers that could have offered better value for money and bypassing competitive bidding processes.
These developments suggest that the replacement of meters may not solely be about improving service but could also be linked to procurement issues, raising concerns about the management of public funds and the need for stronger oversight.
This procurement scandal may provide insight into the company’s current meter replacement strategy. The decision to replace non-faulty meters could be tied to over-procurement of meters or efforts to justify the large volume of meters purchased under irregular contracts. Additionally, ECG failed to recover significant financial losses related to power theft and faulty meters, further fueling suspicions about transparency and efficiency within the company.
Contrary to this claim, Ms. Abubakari stated that ECG is currently clearing its backlog of customers’ meters to be installed and has not purchased meters in the short run.
“We haven’t bought (procured) meters in years. Simply no money. Hence the backlog of service demands which we are now clearing up with private sector partners.”
While ECG may claim that these replacements are part of system improvements, underlying procurement issues and operational challenges might be contributing to the meter replacements.
Customers should seek clarification from ECG on why their meters are being replaced and monitor their energy usage closely after the switch to identify any anomalies. There might also be a need for regulatory intervention if the new tariffs are found to be unjustifiably high.
