Editorial: Does ECG require private sector participation?

During a recent meeting in Accra, CSO representatives met with Minister of Energy and Green Transition, John Abu Jinapor. They acknowledged the government's concerns about ECG's financial struggles. The main issue is ECG's difficulty in collecting enough tariff revenue to pay Independent Power Producers (IPPs).

The CSOs pressed for assurances that ECG employees' livelihoods would be protected. They also supported the minister’s proposal for a comprehensive strategy. This strategy aims to ensure Ghana’s power generation meets rising energy demands and technological advancements.

The Africa Sustainable Energy Centre (ASEC) praised the government for forming a seven-member committee. This committee will oversee the privatization of ECG's commercial operations. ASEC noted that discussions have mainly focused on private sector participation in revenue mobilization.

However, they believe broader challenges facing ECG are being overlooked. There is consensus that ECG needs more private sector capital and expertise. This support is crucial for collecting revenues and achieving operational excellence.

ASEC emphasized the need to modernize ECG’s infrastructure. Upgrading distribution networks can help reduce technical losses. These improvements are essential for accurately capturing all revenues due to ECG.

ASEC also advocated for a regionalized approach to privatization. By forming regional clusters—Northern, Southern, and Middle Belt—the committee can address local challenges effectively. This approach promotes competitive benchmarking, enhances risk management, and allows for gradual implementation of solutions.