Benjamin Boakye, Chief Executive Officer of the Africa Centre for Energy Policy (ACEP), has urged the Ghanaian government to privatize the Electricity Company of Ghana (ECG) to address ongoing inefficiencies and reduce the financial burden on the state. Speaking on Saturday, January 11, 2025, to Alfred Ocansey, Boakye argued that privatization would improve operational efficiency, stabilize the power system, and potentially lower electricity costs for consumers.

Boakye criticized the government’s continued management of ECG, describing it as unsustainable. He pointed out that despite government efforts, the company’s inefficiencies continue to drain significant tax revenues. “There is no sector that bleeds Ghana like ECG,” he said, stressing the need for urgent reform.

He also expressed concern about the long-term risks of postponing necessary infrastructure investments, such as pipeline maintenance, which could lead to greater demand for liquid fuels in the future. “Delaying these decisions only exacerbates inefficiency and increases debt,” he stated.

Boakye responded to concerns that privatization might lead to higher electricity tariffs, asserting that proper regulation could ensure fair pricing even under private ownership. “The state has successfully regulated other sectors, such as telecommunications and banking, where private companies operate under state oversight,” he explained.

Rejecting the argument that electricity should remain a state-run sector due to its essential nature, Boakye argued that the current state-run model allows inefficiencies to persist. “Power is no more important than tomatoes or rice,” he said, challenging the idea that state management inherently serves the public interest better than private sector involvement.

Boakye also criticized the regulatory environment, highlighting the Public Utilities Regulatory Commission (PURC) as lacking the independence and authority to hold state-owned enterprises accountable, pointing to PURC’s inability to enforce fines on ECG.

In conclusion, Boakye called for immediate action, emphasizing that privatizing ECG would help free up resources for other development needs, stabilize the electricity supply, and create a more efficient energy sector. “The time to act is now,” he said, warning that failure to address these challenges could lead to greater financial strain on the government and a less reliable power system for Ghanaians.

Source:TheDotNews