By The African Centre for Energy Policy (ACEP) has endorsed suggestions for the privatization of the Electricity Company of Ghana (ECG).
Ben Boakye, the Executive Director of ACEP, contended that ECG’s inability to guarantee efficient power distribution has resulted in widespread blackouts across the nation.
He elaborated that the company’s ineffective revenue collection methods and failure to mitigate losses have significantly reduced its financial liquidity, hindering its operational capabilities.
“The bottom line is that there isn’t enough generation, and this arises because ECG’s collection is abused and not transparently utilized,” he said on Joy News.
He pointed out that inviting the private sector, will not only revamp the operations of the ECG, but will also make the company accountable.
“The way to deal with it is to get the private sector in there, and that is the only way to make the Public Utilities and Regulatory Commission relevant.”
“We are struggling to regulate a state entity that is becoming a monster and not responding to regulation, “he added.
In offering recommendations, Mr. Boakye proposed that involving the private sector would enable the establishment of clear targets aimed at enhancing the financial stability of the company.
“ECG is not collecting enough revenue, ECG’s collection is abused therefore we do not get enough money to buy fuel. We should not walk away from those fundamental issues of lack of liquidity which is occasioned by ECG’s inefficiency to raise enough revenue to buy fuel to run the generators.”
The call coincides with a suggestion made by the Asantehene, Otumfour Osei Tutu II, during the inauguration of a 430-kilometre natural gas pipeline by Genser Energy, aimed at strengthening the nation’s power sector.
Contrarily, Dr. Elikplim Kwabla Apetorgbor, the CEO of Independent Power Generators, Ghana, has refuted proposals for the privatization of ECG.
“The Privatization of ECG may seem appealing, but it poses significant risks to equitable access, affordability, and service quality,” he argued.
Dr. Apetorgbor called for a review of the governance structure of ECG to make it more profitable.
“The strengthening of the governance structure of ECG and the sector as a whole including representation on the board of ECG, public ownership, regulatory oversight, and community engagement for responsible consumption to achieve sustainable electricity provision.”
