Former Executive Secretary of the Public Utilities Regulatory Commission (PURC), Dr Nii Darko Asante, says that the alleged privatising the Electricity Company of Ghana (ECG) will indicate a failure.
He attributed this failure to shortcomings in both the management and board of ECG, as well as the PURC's failure to enforce performance standards.
The Commission has already warned that ECG is on the brink of bankruptcy due to severe financial difficulties, which are also affecting other key energy institutions like VRA, GRIDCo, and the Bui Power Authority.
Despite efforts to increase revenue through digital programs and a 75% tariff hike since 2022, ECG's instability persists, with recent monthly revenues in June and July 2024 falling short of covering critical bills under the Cash Waterfall Mechanism.
Speaking on JOY FM, Top Story, Dr Asante said, "Privatisation, which I hear being talked about, is essentially an admission of failure.
Failure by the managers and board of ECG, and failure by the regulator to ensure compliance with required performance. So, at the end of the day, there is failure, and we must admit it. Things need to be done, but they are not being done."
Dr Asante stated that the situation has remained unchanged for many years, and the nation shouldn't wait for it to worsen before taking action.
He emphasised that unless the government understands the root causes of the issue, proposed solutions may be suggested without meaningful results.
Dr Asante further noted that the core problems are the technical and commercial losses.
"ECG collects less than 60% of the revenue it needs, and that has nothing to do with anything other than non-performance, so we must address the non-performance. There is wastage, yes, but if you do not collect enough, whether you waste zero or waste 40%, you are still in a hole. So, we have to start with why ECG does not collect enough."
Credit: Isaac Kafui Nyanyovor