Political interference undermines ECG reforms — ACEP Analyst
Energy Policy Analyst at the Africa Centre for Energy Policy (ACEP), Kodzo Yaotse, has urged government to adopt a holistic approach to tackling the country’s persistent power sector challenges.
Speaking on the Business Breakfast Show on Zed 101.9 FM, Mr Yaotse said Ghana’s electricity problems stem from multiple weaknesses across the value chain, from generation through to distribution, rather than a single point of failure.
He noted that high generation costs remain a major burden, but welcomed ongoing efforts by government to renegotiate power purchase agreements with Independent Power Producers (IPPs).
“If some of these charges are lowered, it will save millions of cedis that should not be paid to IPPs and other power generators,” he said.
Mr Yaotse emphasised the need for greater investment in the national interconnected transmission system to reduce technical losses between generation plants and distribution substations.
The analyst further pointed to inefficiencies in distribution, including overaged transformers and weak billing systems, which make it difficult to capture all consumers and recover revenue, particularly from those engaged in illegal connections.
He also called for politics to be removed from the management of the Electricity Company of Ghana (ECG), warning that inefficiency and political interference undermine reforms.
Mr Yaotse highlighted that businesses are increasingly turning to renewable energy and smart storage technologies as alternatives to diesel and petrol generators.
While this shift could ease pressure on businesses, he cautioned that it also poses challenges for government, which may end up paying for unused capacity on the national grid.
“If renewable energy becomes a complete substitute rather than a backup, it creates a headache for government. Those who can’t afford self-generation will resort to illegal connections, and the revenue shortfalls will persist even if tariffs are increased,” he explained.
Mr Yaotse also stressed that unless government balances tariffs with affordability and invests in efficiency across the value chain, the nation risks falling into a cycle of revenue losses, inefficiencies and continued strain on both households and businesses.
