Power Supply Experts Discuss Policy Review

Experts of power supply on Friday met to discuss a policy review report expected to chart a new path for the sector in a bid to bring about efficiency and competition in power generation and distribution in Ghana.

This has become necessary because a power supply reform programme began 10 years ago was not good enough, Albert Kan-Dapaah, Minister of Energy, said when he opened the power sector reform workshop in Accra.

Mr Kan-Dapaah said the previous reform programme, which had the World Bank's support, had laudable objectives to inject efficiency into the utility companies, mainly the Volta River Authority and the Electricity Company of Ghana.

This was done through the establishment of the Public Utilities Regulatory Commission (PURC) and the Energy Commission, among other institutions to monitor and regulate their activities, especially for private participation in power supply through healthy competition.

However, the programme encountered some difficulties and clear concerns that emerged indicated that the companies were not in the position to finance their operations.

Other concerns were that tariffs continued to remain low, regulatory and legal capacity was weak because there was no clear framework for private exit or entry into the industry while the operating performance of the utility companies also remained unacceptable.

In this regard, the Minister said, the companies could not compete with potential investors if there should be any.

Mr Kan-Dapaah said government in consultation with the World Bank therefore, decided to have a second review of Ghana's policy on power with the assistance of the Bank.

He said there was the need for participants at the workshop to critically assess all aspects of the utility companies and to consider, for instance, whether the VRA should remain as it is or whether it should be "torn apart".

By tearing it apart, some of its functions, which are generation and transmission of power, would be taken away from the Authority.

The Minister also mentioned other critical areas that needed to be looked at.

These include whether EGC should continue to receive all the criticisms or that their inefficiencies should be shared, whether they are being pampered and whether the present situation of the two companies would allow them to do better.

Mr Kan-Dapaah said this task was necessary because "ownership of the reform must be ours for our common benefit".

"We need a policy document that can become the pride of Ghana and also an economic force."

He said government was set to ensure an efficient management of power to promote private sector development and at the same time minimise its environmental impact.

The Minister explained that government was not embarking on the reform programme as a general practise of the world but that the development of a strong private sector is essential for the development of the country.

It is expected that the commencement of the reform programme would diversify reliability on electricity and also ensure that there is a rational operation of the power sector.

Mr Kan-Dapaah said the commencement of the programme would also send a clear message to both local and international investors that Ghana was ready for serious business.

Mr. Kobina Hammond, Deputy Minister of Energy, who chaired the workshop, described the current situation of the ECG as "an ugly amorphous woman that nobody wants to marry".

He expressed the hope that when the company is repositioned with the right policy and legal framework, it would become "a very beautiful woman that everybody will have appetite for".