Suit Against ECG Privatisation Thrown Out

An Accra High Court has dismissed an application filed by a member of the New Patriotic Party (NPP), Mr. Saaka Salia seeking an interlocutory injunction to stop the privatisation of the Electricity Company of Ghana (ECG).

According to the applicant, Millennium Development Authority (MiDA) lacked the capacity to act as adviser in the concession arrangement for ECG since its conduct breached Ghana’s laws after it authored and circulated a draft tariff methodology.

But, the court presided over by Lady Justice Mrs. Afua Norvisi Aryene in her ruling last Tuesday rejected the application saying the applicant had no locus to initiate such an action.

According to her, the applicant had no direct interest in the matter as an ordinary citizen of the country and that what he was likely to suffer was the same as any other citizen will suffer should the MiDA process be carried out.

The court said that the applicant lacked capacity to place injunction on the privatisation of ECG as he appears to be a ‘busybody’ who was in court just to abuse the court process.

A cost of GH¢ 5,000.00 was awarded against him.

According to the lawyer of MiDA, Jerry Dei, the entire suit against his client had been struck out because “the plaintiff has been identified by the court as a busy body who was just using the court process to stall the work of government, the Energy Commission and the Public Utility Regulatory Commission (PURC) to better the energy situation in the country.”

Joined to the suit were the PURC, the Attorney General’s office, and the Energy Commission.

Reliefs

The plaintiff, through his lawyer, Mrs Anyenini, was asking for a number of reliefs all aimed at halting moves to get a private company to partner the ECG to distribute power in Ghana.

The plaintiff was further asking for a declaration that the complained conduct of the MiDA and its said advisor or consultant in authoring or circulating draft tariff methodology was improper and offends Act 538, particularly sections 3 and 16.

Section 3 of Act 538 states that, “the PURC shall provide guidelines on rates chargeable for the provision of utility services, examine and approve rates, monitor standards of performance for provision of services, among many other functions,” while Section 16 provides the guidelines for fixing rates.

Statement of claim

A statement of claim accompanying the writ of summons noted that the government, through the Ministries of Power and Finance, had, in collaboration with MiDA, advertised, received bids and shortlisted six companies in an ongoing Private Sector Participation (PSP) in ECG processes in proposed concession for the management, operation of and investment in the electricity distribution business of the ECG.

“Plaintiff says critical mandatory requirements in the said PSP in ECG processes or transactions are a tariff methodology and electricity distribution and sale licence, for which the PURC and the Energy Commission are the two statutory bodies with exclusive mandate to provide and grant,” it noted.