Benjamin Boakye, the Chief Executive Officer of the Africa Centre for Energy Policy (ACEP), has called for the immediate privatization of the Electricity Company of Ghana (ECG) as a solution to the persistent inefficiencies in the power sector and to alleviate the financial burden on the government.
In an interview on Saturday, January 11, 2025, with Alfred Ocansey, Boakye emphasized that privatizing ECG could improve operational efficiency, stabilize the power system, and potentially lower electricity costs for consumers. He criticized the current management of ECG under government control, arguing that its inefficiencies continue to strain the national budget.
“Even with state efforts, the inefficiencies in ECG’s operations are draining significant tax revenues that could be better spent elsewhere,” Boakye remarked. “There is no sector that bleeds Ghana like ECG.”
He further expressed concern that the government’s continued management of the entity, despite its challenges, would not lead to long-term improvements. He warned that any future government, regardless of its political affiliation, would likely continue to struggle with the same inefficiencies. “Even if President Mahama made ECG an NGO today, there is no guarantee that subsequent governments would avoid the same cycle of inefficiency,” he added.
Boakye also discussed the dangers of delaying critical decisions, such as maintaining energy infrastructure, which could lead to increased future demand for liquid fuels and escalate existing inefficiencies. “Pushing these decisions to later dates only creates a cycle of increased demand, inefficiency, and debt,” he said, urging immediate action to address the sector’s challenges.
Addressing concerns about the potential for higher electricity tariffs under privatization, Boakye suggested that effective government regulation could ensure fair pricing despite private ownership. He pointed to sectors like telecommunications and banking, where private entities operate successfully under state oversight, as models for managing electricity in a privatized structure.
“Power is no more important than tomatoes or rice,” he stated, challenging the narrative that the state must solely manage electricity. Boakye argued that this reasoning has allowed inefficiencies to persist under the guise of public interest.
In addition to the inefficiencies in operations, such as overstaffing, Boakye criticized the regulatory environment, particularly the Public Utilities Regulatory Commission (PURC), which he believes lacks the independence and authority to hold state-owned enterprises accountable.
“Government has never been good at regulating itself,” Boakye remarked, citing the PURC’s inability to enforce fines on ECG as an example.
Boakye concluded by asserting that privatization is essential to freeing up government resources for other developmental needs, stabilizing electricity supply, and creating a more efficient energy sector. “The time to act is now,” he urged, warning that continued inaction could lead to further financial strain on the government and a less reliable power system for Ghanaians.
This call for privatization comes at a time when the energy sector is under significant scrutiny, and calls for reform are growing louder. The ACEP CEO’s remarks highlight the pressing need for structural changes to ensure the sustainability and efficiency of Ghana’s power system.
