Benjamin Nsiah, an Energy and Policy Analyst has said the energy sector is financially distressed and suffocates with debts and mismanagement under the New Patriotic Party government.
The energy sector started experiencing these financial challenges in 2023 as the industry managers refused to address and adopt the policy put in place regarding the energy sector levy, which has been ignored for the past eight years in power.
He expressed this on Adekyee Mu Nsem’s morning show on Ahotor FM 92.3 FM hosted by Alex Nana Dogbey in Accra.
He reiterated that debt has swallowed the sector through mismanagement and abuse of the financial system despite the system such a cash water payment was put in place to check any form of corruption in the sector.
In another development, The Minister-Designate for Energy, John Jinapor, has stressed the importance of engaging the private sector as the only viable solution to improving the operations of the Electricity Company of Ghana (ECG) and boosting revenue generation.
His comments follow President John Dramani Mahama’s announcement on January 8th that discussions are ongoing regarding the potential privatization of power distribution in Ghana.
President Mahama cited persistent challenges within ECG, including operational inefficiencies, financial mismanagement, and poor service delivery, as key reasons for exploring private sector participation in the sector.
Jinapor emphasized the urgency of addressing these issues, stating that he plans to work on a transparent framework for the proposed reforms even before his formal swearing-in.
He reiterated that involving the private sector is the only way forward to improve ECG’s system and operations.
“We don’t even want to wait until I am sworn in. We want to, as a technical team, work with some consultants with the World Bank and IMF to transparently determine the framework for how we are going to engage in the private sector.
“Especially with the billing and collection. It is either we set good KPIs go through a competitive tender process and get the best so that we can improve the systems at ECG. The truth is that we have no alternative but to involve the private sector. Where we have gotten to, it is the only option available,” he stated.
Story by: Alexander Kukah
