President John Dramani Mahama has given organised labour a firm assurance that the Electricity Company of Ghana (ECG) will not be privatised.
He made this statement to allay heightened concerns over the possible privatisation of ECG following its inefficiencies and the accumulation of colossal debts.
“Let me assure you that it is not my intention to privatise ECG as an institution. Our focus is more on a public-private collaboration to inject efficiency into our downstream electricity distribution system,” the President said.
He highlighted the poorly managed state of ECG, which has plunged the power distribution sector into debts amounting to GH¢68 billion.
He made a clarion call for drastic measures to address these inefficiencies to prevent the collapse of the power sector, which, he noted, was not fairly managed by the previous administration.
“The ECG has been brought to its knees by a culture of poor governance over the last eight years, with a debt of GH¢68 billion and rising. If we do not act decisively, our entire power sector will collapse. We can only bring down power tariffs if we improve efficiency in power distribution,” he added.
The President further advocated for a public-private partnership as a means to reverse the downward trend in the power distribution sector.
“I am confident that we can enhance the effectiveness of electricity distribution through public-private partnerships, but I assure you that ECG, as an institution, will not be privatised,” he reiterated.
The concerns over ECG’s possible privatisation were triggered by three recommendations made by a seven-member technical committee set up by the Minister of Energy and Green Transition, John Jinapor. The committee was tasked with developing a comprehensive plan for ECG’s future within a month.
The committee’s recommendations included: an outright concession of ECG, a multiple lease model where ECG would be demarcated into various operational zones, and a service franchise arrangement that would allow the private sector to manage low-voltage areas and deliver services directly to consumers.