ASEC BLOG

The Africa Sustainable Energy Centre (ASEC) has expressed deep concern over the Government of Ghana’s newly introduced GHS 1 levy on every litre of fuel. The move is a short-sighted measure that targets citizens rather than addressing structural weaknesses in the energy sector.  This increase in levy joins the existing taxes on fuel prices, including the Energy Sector Recovery Levy (20 pesewas/litre). The proposed tax, intended to support the struggling energy sector, risks placing an additional financial burden on Ghanaians already contending with economic hardship. If implemented, the measure will have long-term implications on inflation, transportation, commodity prices, and the overall cost of living. Fuel is a cornerstone of Ghana’s economy. From agriculture and transportation to food distribution, the cost of fuel drives the price of nearly every essential good and service. The new levy would increase this burden without delivering any solution to the core issues affectin...

The Africa Sustainable Energy Centre (ASEC) has strongly opposed any plans by the Public Utilities Regulatory Commission (PURC) to increase electricity tariffs.  The think tank argues that inefficiencies, illegalities, and a lack of consumer value in the sector must be addressed before any price adjustments are considered. ASEC insists that a rigorous national debate and a thorough examination of the electricity distribution system must precede any tariff hikes. The organisation contends that the Public Utility Act prioritises consumer interests in setting electricity rates, but this mandate has been overlooked for years. While reflective tariffs are essential for operational sustainability, ASEC maintains that the sector must resolve its deep-seated inefficiencies before shifting additional financial burdens onto consumers. “ASEC demands a regulatory framework that requires electricity distribution companies to show proof of at least a 95% collection rate before any tariff increa...

 The Africa Sustainable Energy Centre commends the new government for setting up a committee to oversee the privatization of the commercial aspect of the Electricity Company of Ghana (ECG). However, recent comments and suggestions seem to recommend just the need for private sector participation in ECG revenue mobilisation. The truth is that Ghana does not just need the participation of the private sector for revenue mobilisation. The current state of the ECG requires more than assistance in collecting money owed by customers. We need private sector capital and expertise in critical terms to recoup all revenues and achieve operational excellence before transitioning the ECG. This commercial sector privatisation is stringent because of the following areas: 1. Private sector capital and expertise are needed in the installation of smart meters to ensure accurate and real-time billing, reducing revenue losses due to faulty, inaccurate, or bypassed meters. Also, this is needed to up...

  Effective governance in Ghana’s energy sector depends on transparency, accountability, and efficiency.  A critical step toward achieving these objectives is ensuring that the boards of key entities within the energy value chain include representatives from other major stakeholders.  This cross-representation fosters collaboration, enhances decision-making, and aligns the interdependent roles of various entities, ultimately strengthening sector operations. Such governance reforms are particularly important for improving financial mechanisms like the cash waterfall system and ensuring the long-term sustainability of the energy sector. They also provide valuable insights for ongoing discussions about the privatisation of the Electricity Company of Ghana. Diversity in Board Composition Strengthening Decision-Making Ghana’s energy value chain is made up of key institutions, including the Ministry of Energy, the Public Utilities Regulatory Commission, the Electricity Compa...

The Africa Sustainable Energy Centre (ASEC), is advocating for the Electricity Company of Ghana (ECG) to privatise part of its operations. This move, we believe, will enable the nation’s power provider to focus on its core technical duties such as maintaining and upgrading infrastructure while handing over administrative and commercial aspects to investors.  This comes amid growing concerns about the recent irregular power supply across the country. As a result, the average Ghanaian has had to endure spates of unstable electricity leaving them in search of alternative sources of power that are relatively expensive. Historically, ECG has been plagued with numerous operational and financial challenges, outdated infrastructure, inefficient technology, and rampant electricity theft that have all contributed to frequent power outages, colloquially known as ‘dumsor.’  The company’s massive debts, partly due to unpaid bills from residential, commercial, and governmental bodies, furth...