The African Centre for Energy Policy (ACEP) has supported proposals to privatise the Electricity Company of Ghana (ECG).
The Executive Director of ACEP, Ben Boakye, argued that the ECG has failed to ensure the efficient distribution of power, thereby plunging the country into darkness.
He explained that the lack of effective collection of revenue, and failure to address leakages have rendered the company less liquid to run its operations.
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.
Giving some recommendations, Boakye said bringing on the private sector will help set targets to improve the financial position 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 comes a week after the Asantehene, Otumfour Osei Tutu II made a suggestion during the commissioning of a 430-kilometre natural gas pipeline by Genser Energy, aimed at bolstering the nation’s power sector.
The CEO of the Independent Power Generators, Ghana, Dr. Elikplim Kwabla Apetorgbor has debunked calls for the privatization of the 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.”