‘Privatisation won’t wish away energy sector problems’
By Daniel NONOR, Accra
Chief Executive Officer (CEO) of Independent Power Generators Ghana, Dr. Elikplim Kwabla Apetorgbor, has weighed in on the ongoing debate surrounding the privatization of state-owned entities such as the Electricity Company of Ghana (ECG), the Volta River Authority (VRA), and the Ghana Grid Company (GRIDCo).
Dr. Apetorgbor believes that calls for privatization must be carefully evaluated against the long-term sustainability of these entities.
The discussion over privatization arises from concerns about state-owned entities drawing heavily on government resources without corresponding returns.
Proponents argue that privatization could enhance efficiency and service delivery, while critics raise concerns about potential drawbacks.
Dr. Apetorgbor argues against the privatization of entities like ECG, advocating instead for sustainable public ownership.
He points to past experiences, notably the privatization of ECG to Power Distribution Services (PDS) in 2019, as cautionary examples.
Prior to privatization, ECG was meeting over 80% of its monthly invoices owed to Independent Power Producers (IPPs) and maintaining smooth operations.
However, following privatization, ECG ceased to receive revenue, accumulating significant debt to IPPs.
He emphasizes that the push for privatization should not be driven by unrealistic expectations of an ideal organization overcoming all challenges simply because it is privatized.
Instead, the debate should consider factors such as ensuring reliable electricity supply for sustainable development, learning from past privatization experiences, and exploring alternative solutions.
Dr. Apetorgbor warns of potential negative consequences of privatization, including profit maximization at the expense of public service, increased tariffs, job losses, and infrastructure neglect.
He recommends focusing on strengthening governance structures, regulatory oversight, and community engagement to achieve sustainable electricity provision.
Highlighting the importance of public ownership, Dr. Apetorgbor underscores the need for accountability, equitable access, and strategic governance control over vital national assets like electricity services.
He suggests that with reformed board composition and support comparable to that given to PDS, ECG could experience a turnaround in three months.
Dr. Apetorgbor stressed the importance of learning from past experiences and embracing innovative solutions to overcome challenges in energy delivery while fostering inclusive development for all citizens.
