Editorial: Does ECG require private sector participation?

A coalition of civil society organisations (CSOs) in the petroleum, power and renewable energy sectors is backing government’s push for power sector reforms; that is, mainly changes to Electricity Company of Ghana (ECG) operations.

Meanwhile, the Trades Union Congress (TUC) Ghana and Public Utility Workers Union (PUWU) are opposing any form of private sector participation in the Electricity Company of Ghana (ECG).

That notwithstanding, the coalition of CSOs has called for strong local content provisions and worker safeguards in any restructuring efforts.

During a recent meeting in Accra with Minister of Energy and Green Transition, John Abu Jinapor, CSO representatives acknowledged government’s concerns over ECG’s financial struggles; particularly its difficulty in collecting sufficient tariff revenue to pay Independent Power Producers (IPPs).

The CSOs, however, also pressed for assurances that the livelihoods of ECG employees would be safeguarded under any new arrangement. Furthermore, they support the minister’s proposal to adopt a comprehensive and forward-looking strategy that ensures Ghana’s power generation keeps pace with rising energy demands and technological advancements.

It is worth noting that the Africa Sustainable Energy Centre (ASEC) has applauded government for establishing a seven-member committee to oversee privatisation of the Electricity Company of Ghana’s (ECG) commercial aspect.

ASEC maintains that the current debate has focused solely on private sector participation in revenue mobilisation, neglecting  broader challenges facing the state-run power distributor. All said and done, there is little argument that ECG critically requires more private sector capital and expertise to collect all revenues and achieve operational excellence.

ASEC highlights the necessity of modernising ECG’s infrastructure, such as upgrading distribution networks to reduce technical losses. These measures, ASEC argues, are essential for ensuring that all revenues due ECG are accurately captured and collected, ultimately enabling the company to function more like a commercially viable entity while delivering reliable electricity.

ASEC advocated a regionalised approach to the privatisation of ECG’s commercial operations. In its view, by forming regional clusters (Northern, Southern and Middle Belt) the committee can tailor solutions to local challenges, promote competitive benchmarking, enhance risk management and pilot incremental roll-outs.

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