IES urges transparency in proposed ECG private participation

The Institute of Energy Security (IES) is urging the Ghanaian government to increase transparency and broaden consultation in its proposed private sector participation (PSP) for the operations of the Electricity Company of Ghana (ECG). Prosper Boahene, the Senior Research and Policy Analyst at the IES, expressed these concerns during an appearance on JoyNews’ The Pulse on Tuesday, September 8.

Boahene emphasized that the proposed arrangement must be thoroughly examined to address the concerns of consumers, ECG staff, and organized labor.

His remarks come in response to opposition from the Trades Union Congress (TUC), which has raised issues about private operators' involvement in Ghana's electricity distribution sector. Boahene believes that the lessons learned from the previous Power Distribution Services (PDS) arrangement should guide any future attempts to introduce private participation into ECG's operations. He highlighted the recurring challenge of policy failure and the importance of avoiding past mistakes.

Boahene stressed the need for government to ensure a more transparent and inclusive process, which would help alleviate fears among ordinary Ghanaians, ECG workers, and trade unionists like those from the TUC. He asked for greater clarity on the nature and scope of the proposed private sector participation and questioned the type of PSP being considered, as well as the capacity of the potential operator.

Given concerns about a private operator potentially sourcing and distributing power directly from the bulk supplier, Boahene emphasized the importance of determining whether the private participant's operations should be limited to specific areas of ECG's distribution activities.

Furthermore, Boahene questioned the implications of such an arrangement for ECG's assets and mandate. If the arrangement extends to acquiring power directly from the bulk supplier, what would it mean for the state of ECG's distribution assets and its mandate? He maintained that these critical policy questions should be addressed through meaningful engagement among government, organized labor, ECG workers, consumers, and other stakeholders.

Boahene called for a proper dialogue to understand the potential benefits that private participation seeks to bring to the table.