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Business News Mon, 17 Jul 2017

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ECG privatisation useful - IMANI

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Comment: Yet to be convinced of the usefulness

Author:
PV
Date:
2017-07-17 19:55:40
Comment to:
ECG privatisation useful - IMANI

This is a whole bunch of hogwash. Makes nary any sense and actually, it has even made the case not to under any circumstances privatize ECG.
System losses, Revenue collection Tariff regime, subsidies are basically the issues that are important here.
On subsidy that cannot be removed since removing it would leave some Ghanaians behind in climbing up the social and economic ladder. That is a non starter, and subsidies would have to be maintained for over the long term considering the economic climate and situation the country finds itself.
The non-competitive tariff regime which has been stated has the underpinnings of super abnormal profit margins ie 1.92 kwh as opposed to the regional average of 0.40 kwh clearly makes the case for other alternatives, to nudge those figures to within an acceptable competitive regime.
The problem with revenue collection has been identified, and we know it to be attributable to a larger extent, state institutions. Indeed, that constitutes the single largest problem in terms of the debt situation of ECG, which directly has an effect on the ability of ECG to undertake the needed upgrading of equipment to address those so-called system losses and theft.
I am yet to be convinced of the necessity of the privatization of ECG given these facts. There are no quick fixes to the problems of the power sector. But we can start from somewhere by moving those state institutions off the grid. Throwing good money at ECG under the pretext of privatization is not the answer. This analysis by IMANI actually has not done anything to address the usefulness of the privatization of ECG in the least bit.

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boliboli on Jul 17, 2017 14:26
PV on Jul 17, 2017 19:55
Yet to be convinced of the usefulness