US$250m for Energy Sector Recovery Programme is a futile strategy

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• FENCING AFRICA 6 months ago

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• Rikus 6 months ago

  Is ECG a power producer for it to be buying liquid fuels? What at all is wrong with our leaders? How did we get here?

  Is ECG a power producer for it to be buying liquid fuels? What at all is wrong with our leaders? How did we get here?

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• C'tus 6 months ago

  The doctor is doing PR for ECG.
  • Political Interference in revenue administration
  1. For the past few years PURC has consistently increased tariffs more than 100% from pre-COVID levels, ECG revenue is rather reducing (as ...
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  The doctor is doing PR for ECG.
  • Political Interference in revenue administration
  1. For the past few years PURC has consistently increased tariffs more than 100% from pre-COVID levels, ECG revenue is rather reducing (as reported by them to the CWM)so unless suddenly all the perennial problems of ECG has worsened dramatically something else is afoot and has nothing to do all these problems enumerated by the author. ECG is intentionally underreporting their revenues, refusing to pay stakeholders for the little money they declare and allocated by the CWM committee.
  2. On the issue of politically connected people inflating contracts to the detriment of ECG, the ECG MD was on record disputing the fact the ECG was subject to Public Procurement Laws seeking to operate outside the remit of the law. Is ECG a company ready to fight the canker eloquently articulated above? ECG wants to come out of the laws enacted in the country that seeks to empower SOEs to carry out a more competitive procurement process.
  3. Now the author talks about leniency to politically-connected customers who persistently default. While that is true the impact of these customers to the overall malaise of under-collection is exaggerated. Many of these customers are rather paying ECG staff to continue to enjoy power at discounted prices through various schemes.
  • Pressure on ECG to Finance Expensive Liquid Fuel for Generation
  1. For most of the time liquid fuels have been procured due to inadequacy of natural gas to run these power plants. While it’s true that more effort should be made to secure cheaper gas to sustain power generation, it should be noted that the lack development in Ghana indigenous gas resources is due to the weaknesses of the Gas-to-Power Chain discouraging investors from making further investments to bring in Gas to sell. ECG is primarily responsible for such weaknesses persistently underrecovering electricity sales.
  
  • Exorbitant Operational Costs of Distribution Value-Added Services
  1. All the issues enumerated by the author are true and are a drain on ECG, nevertheless, the same ECG is seeking to operate outside the PPA which affords them legal protection. The comment made by the author for ECG to streamline procurement processes to address these challenges is noted, however such provisions are already in the PPA Act.
  • The Rush After ECG’s Creditworthy Customers as a threat to ECG’s Revenue Base
  1. Power Sector Reforms as implemented in the country in practice has not led to unbridled liberalization of the distribution network. Through innovative play by the regulator, ECG enjoys a lot of monopoly in the distribution network which is often abused.
  2. The author is simply echoeing ECG by claiming that their “juicy customers” are being poached by other generators like VRA. The truth of the matter is that ECG provides very poor service to these “Juicy Customers” forcing them to seek supply elsewhere, so it’s the customers who are actively seeking other supply options, not VRA or the other generators trying to seek and poach them. ECG should invest more in doing proper customer relationship management to retain these customers instead of crying that other Generators are stealing them.
  3. Additionally, ECG/Author should provide a list of these companies who have purportedly left the ECG network. They can’t even list more than 2. The only customer that left the ECG network that is known is B5 Plus due to relocation to new site on th Tema-Aflao road and their large power demand which did not make it efficient to take power from the distribution network. So yet again such assertions and allegations are of a little substance.
  ECG should spend more time fixing their challenges which they have all the power to do so that invest in this cheap spinning and PR CAMPAIGN

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