Former Minister of Power, Dr. Kwabena Donkor, has expressed concern over the ongoing financial difficulties faced by the Electricity Company of Ghana (ECG).
According to him, ECG needs a "fundamental rethink", adding that there is a need to reconsider some investment into the ECG and privatisation as was done during the National Democratic Congress (NDC) regime.
Dr Donkor's comments come in response to a recent warning from the Public Utilities Regulatory Commission (PURC), which highlighted ECG’s near-bankruptcy.
Read also: PURC warns of ECG’s potential bankruptcy in a letter to Presidency and Energy Minister
Dr. Ismael Ackah, PURC's Executive Secretary, detailed in a letter to the Energy Minister, how ECG’s financial troubles are affecting other key institutions, including the Volta River Authority (VRA), the Ghana Grid Company (GRIDCo), and the Bui Power Authority.
In response, in an interview on Joy FM's Middaynews on Wednesday, September 18, Mr Donkor believes this issue is not new, adding that ECG has been facing persistent financial challenges.
He stressed that “This situation did not just happen overnight. ECG has been bleeding for a while. Indeed, ECG can be liken to the woman with the bleeding problem in the Bible and it’s been going on for a while.”
“It is unfortunate and saddening that in August, ECG only collected 42 percent of what they were supposed to collect. This is a serious indictment of the whole ECG system. If you are collecting 42 percent of what you are supposed to collect, there is no way that an entity can survive without drastic structural reform…ECG needs a fundamental rethink,” he stated.
He called for urgent and drastic structural reforms but questioned the timing of such actions, as the country approaches an election period.
“This is not the time for the government of the day to come up with new proposals.”
He proposed that any significant restructuring should be postponed until after the elections, to allow for a more thoughtful, national discussion on how to revamp the power distribution system.
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