Power is not more important than tomatoes or rice, privatise ECG – ACEP Boss

The Chief Executive Officer of the Africa Centre for Energy Policy (ACEP), Benjamin Boakye, has called for the immediate privatization of the Electricity Company of Ghana (ECG) to address inefficiencies within the power sector and reduce the financial burden on the government.

Speaking to Alfred Ocansey on Saturday January 11, 2025 on the pressing challenges facing the energy sector, Mr. Boakye emphasized that privatizing ECG would enhance operational efficiency, stabilize the system, and potentially lower electricity costs for consumers.

According to Mr. Boakye, the government’s continued management of ECG has proven unsustainable, with inefficiencies bleeding the national budget.

He explained that despite the state’s efforts, inefficiencies in ECG’s operations continue to divert significant tax revenues into supporting the struggling entity.

“There is no sector that bleeds Ghana like ECG,” Mr. Boakye asserted.

“Even if President Mahama made ECG an NGO today, there is no guarantee that subsequent governments would avoid the same cycle of inefficiency.”

Mr. Boakye highlighted the risks of postponing critical decisions, such as deferring maintenance on pipelines, which could lead to a higher demand for liquid fuels in the future.

“Pushing these decisions to later dates only creates a cycle of increased demand, inefficiency, and debt. We need to take the bull by the horns and address these challenges now,” he said.

Addressing concerns that privatization could lead to higher electricity tariffs for consumers, Mr. Boakye argued that effective regulation by the government could ensure fair pricing even under private ownership.

“The private sector can invest in ECG, but it is the state’s role to regulate their operations. This has been successful in other sectors, like telecommunications and banking, where private companies operate under state oversight,” he explained.

He dismissed claims that electricity is too essential to be handled by private entities, stating, “Power is no more important than tomatoes or rice. The narrative that the state must manage electricity because it is essential often allows inefficiencies to persist under the guise of serving the public interest.”

Mr. Boakye pointed to the inefficiencies within the current structure of ECG, including overstaffing, as a key reason for its financial struggles.

He urged the government to prioritize efficiency and embrace privatization as a long-term solution to the challenges in Ghana’s energy sector.

He also criticized the regulatory environment, noting that entities like the Public Utilities Regulatory Commission (PURC) lack the independence and power to hold state-owned enterprises accountable.

“Government has never been good at regulating itself,” he said, citing the inability of PURC to enforce fines on ECG.

Mr. Boakye concluded by emphasizing that privatization of ECG is critical to freeing up resources for other development needs, stabilizing electricity supply, and creating a more efficient energy sector.

“The time to act is now,” he urged, adding that failure to address these challenges could lead to more financial strain on the government and a less reliable power system for Ghanaians.

By Christabel Success Treve

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