The Institute for Energy Security (IES) has expressed its support for the privatisation of the Electricity Company of Ghana (ECG).
This endorsement comes amidst calls for the privatisation of the company and the governing National Democratic Congress’ (NDC) stated intention to pursue such a course of action.
Speaking during an interview on The Point of View on Channel One TV, Nana Amoasi VII, Executive Director of the IES, underscored the necessity of involving private partners in the distribution segment, particularly in revenue collection, to tackle the sector’s inefficiencies.
“The IES is not against the privatisation of ECG,” Nana Amoasi VII stated. “Bringing in private partners to support the distribution leg of ECG’s work, particularly the revenue collection side, is crucial. We firmly support what the government wants to do.”
Nana Amoasi VII highlighted that the IES has consistently advocated for private sector involvement, including during the era of the PDS ECG concession model. He stressed that the core challenges in the energy sector lie within the distribution segment of the value chain.
“If you take away the inefficiencies and invest more in the business of distribution, we are sure that our technical and commercial losses will be drastically reduced,” he explained.
He also pointed out that the Public Utilities Regulatory Commission (PURC) had at one time reported that ECG was unable to collect close to 50% of expected revenue in certain months, a situation he described as a major threat to the company’s sustainability.
“No business will survive if this is the situation,” Nana Amoasi VII noted. “So we support the idea; we need private sector funding, expertise, and technology that will be good enough to change the narratives of ECG.”
Source: Citinewsroom