Policy Lead for Petroleum and Conventional Energy at the African Center for Energy Policy (ACEP), Kodzo Yaotse, has condemned the government’s handling of the ongoing power crisis bedeviling the nation.
Amidst the escalating concerns over the energy sector, he outlined the systemic issues plaguing the sector and called for immediate action to introduce greater efficiency and accountability.
He underscored the widespread nature of the current power shortage affecting the entire country and stressed, “The narrative that the problems are localized is misleading. This is not just a massive problem; it’s a pervasive one that we all must acknowledge and address together.”
Kodzo Yaotse spoke in an interview at the African Center for Energy Policy (ACEP) after a media engagement on Ghana’s Special Drawing Rights (SDR) allocation utilization.
Recent reports have debunked earlier claims by the Electricity Company of Ghana (ECG) attributing the power disruptions to faulty transformers.
Kodzo Yaotse pointed out that the real issue lies with underutilized power plants that remain inactive due to financial constraints.
“We have plants ready to produce power, but no fuel for them. This has led to load management measures where parts of the country face blackouts to prevent grid collapse,” he explained.
According to him, the reluctance of the authorities to take responsibility for load management has forced GRIDCO to undertake some measures that have led to a crisis where even essential services like hospitals could face power cuts.
“It’s evident that the Electricity Company of Ghana (ECG), being a monopoly, does not prioritize consumer needs. There have been calls for private sector participation to bring about more efficient management,” Charles added.
He argued that private entities, governed by stringent performance indicators, could potentially manage the distribution and financial aspects of the energy sector more effectively than current government-operated entities.
The debate over private sector involvement comes when Ghana is grappling with the legacy of past debts. The Energy Sector Levies Act (ESLA) was introduced as a remedy, but according to Yaotse, “It’s now just a band-aid on a bullet wound. We’re paying interest on bonds issued to clear old debts, but this does nothing to address the root causes of our current problems,” and called for a radical overhaul of the energy sector.
“We need to detach political influence from technical management and ensure that the energy sector operates on a financially sustainable model. This means revamping our revenue collection mechanisms to provide constant liquidity throughout the value chain, ensuring all parts of the system can sustain themselves,” he added.
Source: Thenewsbulletin24