The Africa Sustainable Energy Centre (ASEC) has praised the government for forming a seven-member committee tasked with overseeing the privatisation of the commercial aspect of the Electricity Company of Ghana (ECG).
However, ASEC has raised concerns that the current debate on privatisation is too focused on private sector involvement in revenue mobilisation, overlooking the wider operational needs of the state-run utility.
ASEC advocates for a more comprehensive approach, urging that the privatisation process should include the infusion of private sector capital and expertise to address operational inefficiencies, not just help collect payments from customers.
According to an ASEC spokesperson, “The current state of the ECG requires more than assistance in collecting money owed by customers. We need private sector capital and expertise in critical terms to recoup all revenues and achieve operational excellence before transitioning ECG.”
The think tank’s recommendations cover several crucial areas, with an emphasis on improving ECG’s operational capabilities through private sector investment. Key suggestions include the installation of smart meters for real-time billing, upgrades to customer management systems with advanced billing software, and mobile payment platforms.
ASEC also calls for robust debt recovery mechanisms and the introduction of anti-theft technologies to reduce revenue leakages.
ASEC further highlights the need for modernising ECG’s infrastructure, such as upgrading distribution networks to mitigate technical losses. These measures, ASEC argues, are vital for ensuring accurate revenue collection, which is a crucial step toward transforming ECG into a commercially viable entity that delivers reliable electricity.
Dr. Elvis Twumasi, ASEC’s Director of Research and Innovation, explained, “The private sector can unlock operational efficiencies, allowing ECG to operate more like a commercially viable entity while ensuring a sustained electricity supply.”
ASEC also recommends a well-structured concession period for the privatisation, taking into account capital recovery timelines, revenue improvement milestones, and debt recovery projections. They believe this approach will safeguard long-term benefits for both the nation and private investors, ensuring that the private sector achieves its objectives while revitalising ECG.
In addition, ASEC advocates for a clear regulatory framework and extensive stakeholder engagement throughout the privatisation process.
The think tank stresses the importance of defining the scope of privatisation, establishing transparent procurement processes, and empowering the Public Utilities Regulatory Commission (PURC) to oversee tariff adjustments while protecting consumer interests.
ASEC urges the committee to develop performance-based concession agreements (PBCAs) that tie financial rewards to measurable performance indicators.
They believe this will ensure that private sector operators meet clearly defined targets, enhance operational efficiency, and safeguard long-term public ownership of key assets.
Another key proposal is the regionalisation of ECG’s commercial operations, with the think tank suggesting that the committee consider dividing the country into regional clusters (Northern, Southern, and Middle Belt).
ASEC believes this approach will enable private operators to address local challenges more effectively, improve risk management, and foster competitive benchmarking.
By adopting these comprehensive recommendations, ASEC believes Ghana can transform ECG into a modern utility provider capable of supporting the country’s industrialisation and economic growth agenda.
The think tank urges the committee to conduct thorough analyses, considering factors such as revenue improvement, debt recovery, and tariff adjustments, to ensure a successful and sustainable privatisation process.