Energy think tank, Africa Center for Energy Policy (ACEP), said here Friday it supported the decision by the Ghana government to review Power Purchase Agreements (PPAs) signed by the previous administration with various companies to improve power supply.
Head of Policy at ACEP, Dr. Ishmael Ackah, told an Accra-based radio station the decision was a welcoming one that would allow certain concerns of employees to be factored into some of the agreements.
President Nana Akufo-Addo revealed in his maiden address to the legislature early in the week that, as at the end of 2016, the Electricity Company of Ghana (ECG) had signed 43 Power Purchase Agreements (PPA) while a further 23 were under discussion.
“Government is conducting a review of all the Power Agreements entered into by the previous government in order to prioritize, renegotiate, defer or cancel outright, if necessary, in the national interest,” the president stated.
Six companies have been shortlisted but the contract has not been awarded yet.
ACEP in November 2016, in a report titled “Beyond the Election 2016”, urged the government to review existing PPAs with companies holding power purchase contracts with ECG, the main power distributing company.
Ackah said whichever company was selected to manage ECG, it must be possible to put some of the concerns of the workers into the terms of reference.
“What we all expect is that the ECG becomes efficient. In 2015, we were told their distribution losses alone were 32 percent, and one percent cost about 8 million U.S. dollars,” he said. “So we want an ECG where distribution losses will be less than 10 percent and they also need to do investment.” Enditem
Source: Francis Tandoh, Xinhua/NewsGhana.com.gh