B&FT Editorial: Improving energy sector operational efficiency

Depot automation is a crucial part of BOST’s strategic investment, as technical and mechanical staff across all depots are currently undergoing a four-day training programme to enhance operational efficiency nationwide.

Once complete, BOST anticipates tripling its efficiency; thereby strengthening its competitive edge in the oil storage and transportation industry.

“This is key to regaining the confidence of our multilateral customers and ensuring they continue working with us,” Mr. Appiah stated, urging staff to embrace the changes and maximise learning opportunities provided by the training.

However, following the resignation of ECG’s Managing Director Samuel Dubik Mahama on Wednesday, September 25, a complete overhaul of ECG’s management is being demanded, particularly due to concerns over poor revenue collection from power sales.

There are calls for a new management team with clear key performance indicators (KPIs) to ensure effective leadership and financial recovery.

Kodzo Yaotse, Policy Lead for Petroleum and Conventional Energy at ACEP, highlighted that ECG’s revenue losses surged from GH¢295million to GH¢9.7billion between 2017 and 2022.

There is currently a shortfall in generation of about 500 megawatts, which is a result of inadequate fuel supply.

Meanwhile, the Public Utilities Regulatory Commission (PURC) has served notice that the Electricity Company of Ghana (ECG) may be on the verge of bankruptcy due to severe financial difficulties.

PURC’s Executive Secretary, Dr Ismael Ackah, said the crisis is also impacting operations of Volta River Authority (VRA), Ghana Grid Company (GRIDCo) and the Bui Power Authority.

According to Dr. Ackah, these challenges have led to delays in salary payments and difficulties in covering administrative costs… underscoring the urgency for immediate action.

The situation worsened in August 2024 with ECG’s revenue falling below GH¢800million, representing about 42% of the expected revenue needed to pay sector players.

Government must come clean about issues regarding ECG’s status and how it proposes to remedy the situation for Ghanaian consumers of electrical power.

Power supply problems are surfacing increasingly and the public must be kept abreast of issues at hand.