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A seven-member technical committee with the mandate to explore private sector participation in electricity distribution was inaugurated in Accra on Friday by the Minister of Energy and Green Transition, John Abdulai Jinapor.
The committee will, among other things, consult extensively with consumers, industry players, unions, and technical experts to recommend a suitable model for integrating private sector participation into the electricity distribution system.
It is chaired by former Chief Executive Officer (CEO) of Bui Power Authority (BPA), Mr Jabesh Amissah-Arthur, with former Director of Renewable Energy at the Energy Commission of Ghana, Dr Shafic Suleman, serving as Secretary.
The other members include the former Executive Director of the African Energy Commission (AFREC), Mr Benjamin Boakye; the former Executive Director of the Public Utilities Regulatory Commission (PURC), Dr Simon Akorli; the General Manager for Energy Acquisition and Risk Management at the Electricity Company of Ghana (ECG), Mr Ebenezer Baiden; a legal practitioner with expertise in governance and advisory roles, Lawyer Emma Akua Bulley; and a finance expert and risk analyst, Mr Edward Abrokwah.
Speaking at the event, Mr Jinapor warned of an impending collapse of the sector due to inefficiencies and a crippling debt of over $3 billion. He described the energy sector as “bleeding” and emphasised the urgent need for reform.
“The energy sector is bleeding, and if nothing is done in the shortest possible time, it will collapse,” he stated, highlighting the challenges faced by the Electricity Company of Ghana (ECG) and Northern Electricity Distribution Company (NEDCo).
He revealed that the ECG alone suffers from a combined technical, commercial, and collection loss of 40 per cent, making its operations unsustainable.
He also drew attention to inefficiencies in ECG’s procurement practices, with over 2,500 containers of essential materials stranded at Tema Port, incurring GH¢1.5 billion in demurrage costs.
“This is unacceptable. No utility in the world can survive such losses,” he said, adding that preliminary investigations revealed some suppliers exploit the situation, purchasing stranded containers worth $500,000 for as little as GH¢100,000 and reselling them at a profit.
Mr Jinapor assured that the government had no intention of selling ECG but was committed to improving its efficiency through strategic private sector partnerships. He also highlighted the importance of local participation and a transparent competitive tendering process.
On his part, the chairman of the committee, Mr Amissah-Arthur, expressed gratitude for the confidence reposed in him and his team. He pledged the committee’s dedication to conducting thorough consultations with all stakeholders and producing practical recommendations to guide the reform process.
“We are committed to ensuring transparency and accountability in this task. The goal is to bring efficiency and sustainability to Ghana’s energy distribution sector,” he said.
The committee is expected to present its report within a month, working with urgency to address the challenges in the energy sector. The minister assured the committee of the ministry’s full support, including the provision of all necessary logistical resources to ensure the timely completion of their mandate.
BY STEPHANIE BIRIKORANG
