IES is not against the privatisation of ECG - Nana Amoasi VII

Accra, Ghana - 16 Jan, 2025 - Ghana's Institute for Energy Security (IES) has thrown its weight behind the proposed privatisation of the Electricity Company of Ghana (ECG), citing the need for private sector expertise and funding to tackle the energy sector's inefficiencies.

According to Nana Amoasi VII, Executive Director of the IES, involving private partners in the distribution segment, particularly in revenue collection, is crucial to addressing the sector's challenges.

The IES has consistently advocated for private sector involvement in the energy sector, and Nana Amoasi VII believes that the core challenges lie within the distribution segment of the value chain. He explained that investing in the business of distribution and tackling inefficiencies could drastically reduce technical and commercial losses.

The ECG's struggles with revenue collection were highlighted by the Public Utilities Regulatory Commission (PURC), which reported that the company was unable to collect close to 50% of expected revenue in certain months. This, Nana Amoasi VII noted, poses a significant threat to the company's sustainability.

“The IES is not against the privatisation of ECG,” Nana Amoasi VII stated in an interview on The Point of View on Channel One. “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.”

“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.''

“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,'' he added.

Source: Lead News Online