Government Must Continue With ECG Reforms To Save Company

The Africa Centre for Energy Policy (ACEP) has expressed worry over the strike action by workers of the Electricity Company of Ghana (ECG).

ACEP described the situation as unacceptable and said consumers have gone through a lot of frustration trying to access the services of ECG.

While agreeing with government on the reasons for the decision to put the company on concession for 25 years, the Civil Society Organisation said government’s interference in appointing the Board and Management has contributed to the current situation.

ACEP made these observations in a press release signed by its Executive Director, Dr Mohammed Amin Adam.

“We are of the view that the reasons for the decision to put the company on concession are not in doubt. It is well known that ECG has not provided satisfactory services to consumers of electricity over the years. We also know that government interference with the company concerning appointments to the Board and Management as well as its indebtedness to the company is partly to blame for the current state of the company,” the statement noted.

Workers of ECG declared a sit-down strike on Wednesday August 24 in protest of government’s planned privatization of the company. The workers cited government’s $500 million indebtedness to the company as a cause of its current financial woes.

ACEP, in the statement, proposed that government considers other forms of privatization such as a transfer of majority ownership of shares (at least 51%) in ECG to a strategic partner selected through an open and competitive process or offloading the shares to be acquired through the Ghana Stock Exchange.

“ACEP wishes to state that the reforms in ECG must be aimed at eliminating government interference, raising capital for the company and introducing new business processes and culture to address the level of inefficiencies and financial challenges of the company,” the statement said.

The organization urged government not to reverse in its pursuit of the reforms in ECG in other to ensure quality service delivery. It however said government must do so with deeper consultations with the workers, Civil Society and other relevant stakeholders.