ASEC backs privatization of ECG’s commercial operations

The Executive Director of the Africa Sustainable Energy Centre (ASEC), Ing. Justice Ohene-Akoto, has backed calls for private sector participation in the commercial operations of the Electricity Company of Ghana (ECG), describing the move as a game changer for the power sector.

His comments come amid growing debate over recommendations by the International Monetary Fund (IMF) for greater private sector involvement in ECG’s operations under Ghana’s current IMF-supported programme.

Speaking to JoyBusiness, Ing. Ohene-Akoto said ECG continues to face significant commercial losses that are affecting the financial stability of the energy sector.

“Private sector participation is a good thing and a game changer,” he said. “The commercial arm of ECG should have private participation.”

According to him, while technical losses within the power distribution system remain within acceptable levels, commercial losses have risen sharply in recent years.

“Commercial losses have gone beyond 30 percent,” he stated. “Let’s introduce a business-minded approach into the system.”

He argued that involving private companies in revenue collection would improve efficiency, strengthen accountability, and introduce competition into the sector.

“We should bring in a number of private sector partners whose role will be to collect revenue,” he added. “The PURC will still regulate, but competition will make the private sector more innovative.”

Recent estimates in 2025 suggest ECG’s losses could be as high as 40 percent, driven largely by power theft, illegal connections, metering challenges, and unpaid bills.

Ing. Ohene-Akoto also argued that reducing losses in the energy sector would ease pressure on government finances and allow more resources to be redirected to other sectors of the economy.

His comments follow the IMF’s defence of private sector participation in ECG’s operations. IMF Mission Chief for Ghana, Dr. Ruben Atoyan, has clarified that the Fund is not calling for the full privatization of ECG, but rather reforms aimed at improving efficiency and stabilizing the power sector.

المصدر: MyJoyOnline (GH)