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Karikari Kwagyan Achireko Director, Corporate Strategy, Africa Sustainable Energy Centre (ASEC)
In the wake of changes in Ghana’s energy sector, experts have called for increased cross-representation on boards of key entities within the energy value chain.
One such advocate is the Africa Sustainable Energy Centre (ASEC) which argues that improved governance structures will enhance transparency, accountability, and operational efficiency in the sector.
The energy think tank argues that diversifying the members of these boards offers the opportunity to make decisions that are vetted by people of various unique technical perspectives.
According to ASEC, the distinct roles various energy players play allow for their “decisions to have significant implications for the broader sector.”
In an article, they shared some ways the government can work towards this.
Strengthening Decision-Making Through Board Diversity
ASEC emphasises that cross-representation on the boards of these institutions would provide a platform for diverse perspectives and technical expertise. According to governance experts, including representatives from the Ghana Grid Company (GRIDCo) Limited and Volta River Authority (VRA) on the ECG board could enhance electricity distribution decisions by ensuring transmission constraints and generation capacities are factored into planning.
“Cross-representation on their boards allows for diverse perspectives, technical expertise, and firsthand insights into sector-wide challenges, improving governance and operational effectiveness,” they stated.
They further noted that as plans are advancing towards privatising the Electricity Company of Ghana (ECG), the government ought to prioritise expertise from within the company itself.
“It would have been prudent for the Ministry of Energy to prioritise expertise from within the company itself. Past managing directors and senior directors who have worked in the company for over three decades have a deep understanding of the system, including operational dynamics, regulatory challenges, and financial structuring.
These experienced professionals have successfully managed sector transitions, overseen infrastructure investments, and implemented policy reforms that have shaped the sector over the years. Their expertise would have been invaluable in addressing the company’s current challenges and guiding any transition process,” the think tank said.
Director of Corporate Strategy at ASEC, Karikari Kwagyan Achireko is of the view that “Outsourcing leadership without drawing on this internal institutional knowledge risks disconnecting decision-making from practical sector realities. Leveraging the knowledge of seasoned professionals within the Electricity Company of Ghana would have ensured a governance framework that is aligned with the long-term interests of the energy sector”
Enhancing the Cash Waterfall Mechanism
The cash waterfall mechanism, designed to ensure equitable and prioritized revenue distribution across the energy sector, is another area where governance reforms are deemed necessary. ASEC says that cross-representation can improve transparency, coordination, and trust among key institutions.
By having GRIDCo and VRA representatives on the ECG board, revenue collection and payment schedules would be more transparent, reducing disputes and payment delays to upstream entities. Furthermore, the presence of the PURC on the ECG board could ensure that tariffs reflect operational costs and investment needs, leading to improved financial stability across the sector.
Achireko noted that the “presence of Ghana Grid Company Limited and Volta River Authority representatives helps ensure that payments to transmission and generation entities are prioritised, reducing arrears and enhancing liquidity across the value chain. If there are delays, direct representation on the board allows for prompt resolution of financial concerns”.
He added that for the sake of transparency, “including consumer advocacy groups on the board allows for greater accountability in addressing service quality and affordability concerns”.
Aligning Infrastructure Investments with Sector Needs
ASEC has also highlighted the importance of aligning infrastructure investments with national energy goals. They believe would help prevent misallocation of resources and operational bottlenecks.
“For instance, when the Electricity Company of Ghana plans a network expansion to improve service reliability, representatives from the GRIDCo and the VRA on its board can help ensure that these upgrades are compatible with existing generation and transmission capacities. Without such coordination, expansion projects risk financial losses and disruptions to service delivery.
A governance model that fosters structured collaboration and shared decision-making leads to more efficient capital allocation and sustainable sector growth,” they stated.
Strenghtining Accountability and Collaboration
Cross-representation is also expected to enhance accountability by ensuring that operational and financial concerns are addressed in a timely manner.
“For example, if the Electricity Company of Ghana delays payments to the Ghana Grid Company Limited, the presence of grid company representatives on its board ensures that issues are addressed promptly. Similarly, independent power producers with board representation can advocate for fair contractual terms and the timely settlement of payments, reinforcing trust and stability in the sector.This collaborative approach reduces inter-entity disputes, promotes financial discipline, and strengthens the overall governance of the sector,” the energy think tank shared.
ASEC believes private stakeholders in the energy sector board governance is feasible. They believe this move will allow for “the introduction of innovative financing models and efficiency improvements”.
“Independent power producers can contribute to strategies for integrating renewable energy into the national grid, supporting Ghana’s long-term energy transition objectives. Their involvement in governance discussions also encourages investment in cost-effective and sustainable infrastructure solution,” ASEC says.
Conclusion
Cross representation in the governance of Ghana’s energy sector is not merely a structural enhancement but a necessary measure for achieving transparency, accountability, and efficiency. By integrating the perspectives of all key stakeholders, the sector can strengthen financial mechanisms such as the cash waterfall system, improve the coordination of infrastructure investments, and foster trust and collaboration among entities.
Furthermore, in light of discussions on privatising the Electricity Company of Ghana, it is essential to recognise the importance of leadership continuity and institutional knowledge. The expertise of seasoned professionals within the company should have been prioritised to guide decision-making and policy implementation. These individuals possess a deep understanding of sector challenges and would have been better equipped to oversee any transition process in a manner that safeguards Ghana’s long-term energy security.
A governance framework that fosters cross-representation ensures that policymakers, investors, and consumers alike benefit from a stable and transparent energy sector that can support national development goals.

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