The Institute of Energy Security (IES) has urged the Ghanaian government to ensure greater transparency and broader consultation over its planned private sector participation (PSP) in the operations of the Electricity Company of Ghana (ECG).
Senior Research and Policy Analyst Prosper Boahene made the remarks on JoyNews’ The Pulse on Tuesday, September 8, citing concerns among consumers, ECG workers and organised labour that could arise if the proposal proceeds without proper scrutiny.
Boahene’s comments come after the Trades Union Congress (TUC) voiced opposition to the idea of private operators entering Ghana’s electricity distribution sector. He warned that lessons from the previous Power Distribution Services (PDS) arrangement should guide any new attempt to introduce private participation into ECG.
“There is also this popular saying that policy failure, you know, and the failure to correct past failures is a recurring challenge,” Boahene said, stressing the need for the process to be more transparent and inclusive. He questioned how the government could open the space for public confidence if it is determined to involve a private participant.
He called for clarity on the nature and scope of the PSP, asking what type of participation the government intends to enroll and the magnitude of the operator’s capacity. Boahene noted that the scope is critical, especially if a private operator could source and distribute power directly from the bulk supplier.
“If she goes all the way down to getting power directly from the bulk supplier, what does it mean to the state of ECG’s distribution assets or ECG’s distribution mandate?” he asked. The analyst urged stakeholders to examine whether the private participant’s operations should be restricted to specific areas of ECG’s distribution activities.
Boahene maintained that the concerns surrounding the proposal should be addressed through meaningful engagement among government, organised labour, ECG workers, consumers and other stakeholders. “These are the critical policy questions that we need to ask, sit down and have a proper dialogue on this to be able to understand what the private participation seeks to bring out,” he said.
The IES is now calling on the Ministry of Energy to open the debate and provide detailed information on the proposed PSP before any final decisions are made.
