Economy

Expert warns ECG could lose market due to inefficiency …calls for de-politicizing management amid privatization debate

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Kodzo Yaotse, Policy Lead for Petroleum and Conventional Energy at ACEP, has raised concerns about the performance of the Electricity Company of Ghana (ECG). He suggests that if there were competition in the power distribution sector, ECG

 According to Yaotse, if there were competitors in the power distribution market, ECG might have already lost its customer base due to inefficiency.

Yaotse criticized ECG’s self-reform efforts as ineffective and pointed out the ongoing difficulties between the Public Utilities Regulatory Commission (PURC) and ECG as evidence of the government’s challenges in regulating its entities.

He suggested, “To find more sustainable solutions, we must isolate the politics from the technical management of ECG.”he said this in an interview on the sidelines of a capacity workshop for members of the Parliamentary Press Corps in Accra.

He emphasized the urgency of adopting sustainable measures to improve ECG’s operations, particularly in revenue collection to enhance liquidity across the energy value chain. Yaotse also noted the absence of a load-shedding timetable as a sign of regulatory defiance by ECG, which complicates the management of power distribution and impacts critical services like hospitals.

The discussion also touched on the broader implications of privatizing ECG. While privatization has its advocates, there are also strong reservations, highlighted by the recent comments from Asantehene Otumfuo Osei Tutu II and Dr. Elikplim Kwabla Apetorgbor, CEO of Independent Power Generators Ghana.

Dr. Apetorgbor argued against privatization, citing the potential for increased tariffs, job losses, and neglect of infrastructure.

He advocated for maintaining public ownership of ECG, enhancing operational efficiencies, and exploring public-private partnerships to ensure reliable electricity supply essential for Ghana’s economic development.

These contrasting viewpoints underscore the complexity of managing Ghana’s energy sector, where strategic governance and transparency are crucial to addressing the ongoing challenges effectively.

By Eugene Davis

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