ASEC BLOG

 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...