A study conducted by the Africa Centre for Energy Policy(ACEP) has revealed that illegal connections in Ghana’s electricity distribution system cost electricity distributors over GH1.3 billion annually. The loss constitutes an average additional cost of 15Gp per kilowatt-hour (kWh) of energy that consumers pay for electricity.
According to the study, the identified illegality includes the distribution of unprocessed electricity metres. These meters do not enable standardized reading and billing of consumers under the Self-Help Electrification Programme (SHEP). The study aimed to confirm the existence of illegal SHEP meters, raise awareness and make informed policy decisions for reform of the electricity distribution system.
Based on the prevalence of illegal SHEP meters in the Ashanti and Greater Accra regions, ACEP randomly sampled urban and sub-urban residential areas in these two regions.
The study identified 3,667 illegally connected SHEP metres from selected urban and sub-urban residential areas. Over 70% of these metres had non-functioning liquid crystal displays (LCD). As a result, the electricity distributors cannot access consumption data on these metres for billing purposes.
“Even if the power distributors are able to locate these meters, they cannot estimate how much power has been consumed for retrospective billing.
“The remaining metres identified show very high consumption with some as high as 28,320 kWh.”
Moreover, the study established a disturbing phenomenon known as “abortion electricity metres”. These metres are deliberately damaged through application of concentrated heat on the digital displays. Some of these metres also have their digital components which allows communication with the power distributors removed.
Comments on the findings
Commenting on the findings, the Policy Lead in charge of Petroleum and Conventional Energy at ACEP, Mr Kodzo Yaotse explained that power distribution agents are the main drivers of the illegal connections. He said the service providers actively connived and advised illegal electricity consumers on illegal connections and metre tampering for their private gain.
“… politicians secured SHEP meters from the Ministry of Energy (MoE) to share and connect households to the grid for electoral gains without the active involvement of power distributors.”
According to Mr Yaotse, the results suggest that the illegal connection is widespread throughout the country. Also, evidence points out that the electricity power distribution agents are brazen facilitators of illegal connection.
Furthermore, he noted that the SHEP programme has significantly contributed to increase in electricity access rate in the country. However, the inability of communities to meet the minimum requirements had resulted in meters finding their way into undesignated locations for illegal connections.
In view of this, Mr. Yaotse charged the government to take immediate step to curb the situation. He asked ECG to immediately take steps to regularize all meters and eliminate the damaged ones. He recommended that ECG must also adopt a whistle-blower mechanism to support the detection of illegal connection in the system.
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