The Executive Secretary of the Coalition of Stakeholders on Electricity Contracts and Arrangements (COSECA) has expressed doubt about the Electricity Company of Ghana‘s (ECG) ability to appeal to a strategic investor.
He believes no entity would agree to invest in a failing organisation.
According to Nana Yaa Jantuah, the Electricity Company Ghana (ECG) should be put on its feet before privitisation is considered.
In an interview on Joy FM’s Top Story on Wednesday, September 18, 2024, she said: “These issues have been discussed variously and it has been there for some time but the most important thing is that, who is making sure that the right thing is done? What are the benchmarks that have been given to the ECG to follow?”
“The benchmarks that go with the tariffs, are they adhering to it? Of course, they are talking about privitisation, but what form of privitisation are they talking about? I saw in PURCs letter to float shares on a stock exchange. Who would put their money into an ailing organization or company?” she questioned.
She called for a holistic approach and proper stakeholder conversation on the matter.
These concerns follow a recent warning from the Public Utilities Regulatory Commission (PURC), which highlighted ECG’s near-bankruptcy.
Dr. Ismael Ackah, PURC’s Executive Secretary, detailed in a letter to the Energy Minister, how ECG’s financial troubles are affecting other key institutions, including the Volta River Authority (VRA), the Ghana Grid Company (GRIDCo), and the Bui Power Authority.
The Commission among other recommendations stressed that privatisation should be considered a viable option to ensure the long-term financial sustainability of ECG and the stability of Ghana’s energy sector
But also contributing to the discussion, former Executive Secretary of PURC, Dr Nii Darko Asante, said privatising the ECG indicates a failure.
He attributed this failure to shortcomings in both the management and board of ECG, as well as the PURC’s failure to enforce performance standards.
“Privatisation, which I hear being talked about, is essentially an admission of failure. Failure by the managers and board of ECG, and failure by the regulator to ensure compliance with required performance. So, at the end of the day, there is failure, and we must admit it. Things need to be done, but they are not being done,” he explained.
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