President John Dramani Mahama has firmly assured Ghanaians that the Electricity Company of Ghana (ECG) will not be privatised, despite mounting concerns over the company’s financial woes and the broader challenges facing the nation’s power sector.
Addressing workers and citizens at the May Day celebrations held at Black Star Square in Accra on Thursday, May 1, President Mahama responded to widespread fears about the possible sale of the state-owned power distributor.
He emphasised that his administration has no intention of relinquishing public ownership of ECG, instead advocating for strategic collaborations with private partners to boost efficiency.
President Mahama said “Let me assure you that it is not my intention to privatise ECG as an institution. Our attention is more on a public-private collaboration to inject efficiency into our downstream electricity distribution system”.
The President outlined the dire state of ECG’s finances, attributing its challenges to years of poor governance and mismanagement.
He revealed that ECG is currently saddled with a debt of GH¢68 billion, warning that without decisive intervention, the entire power sector could face collapse.
“The ECG has been brought to its knees by a culture of poor governance over the last eight years, with a debt of GH¢68 billion and rising. If we do not do something drastic, our whole power sector will collapse. We can only bring down power tariffs if we improve efficiency in the distribution of power”.
Mahama pointed to the success of public-private partnerships during his previous term, citing the example of Enclave Power Company, which manages metering and billing in the Free Zones enclave. Under this arrangement, ECG supplies bulk power while Enclave Power handles billing and collections, achieving a 99% revenue collection rate.
He recounted “When I was President, in the free zones, a private company, Enclave Power, was given the right of metering and billing in the free zone. ECG provided them with a bulk supply of power. They pay ECG, and until today, they still pay ECG monthly on time. Their billing and collection in the free zones enclave is 99% of revenue collected”.
He argued that such partnerships can deliver much-needed operational improvements without the need for privatisation.
“I am sure that we can make our electricity distribution more effective through public-private partnerships, but I can assure you that electricity as an institution will not be privatised,” Mahama reiterated.
President Mahama’s assurance is expected to calm fears and refocus attention on reform strategies that preserve public ownership while seeking greater efficiency and sustainability in Ghana’s power sector.
Source: www.kumasimail.com /Kwadwo Owusu
