The energy sector on autopilot for the first 100 days of the new administration

Ghanaians have high expectations after the swearing-in of a new President on the 7th of January, to swiftly oversee all sectors of the economy. We have the first ‘100 days’ expectations and in some countries, there is a belief that the momentum of these ‘100 days’ determines the pace and success of a government.

The energy sector with its numerous problems does not have a Minister and looking at the timetable for vetting by Parliament, we will not have one until the end of February. Even when the President appoints a caretaker as stipulated in the Transition Act 845, 2012, section 13 (5), that individual cannot make policy decisions. The Authorities, corporations, and companies under the sector faces the same problem of inaction and no policy direction since their boards were dissolved as per the Chief of Staff’s letter dated January 12, 2021.

This problem is not only felt in the energy sector but across the entire government in Ghana. In the midst of this Covid-19 pandemic, the President does not have a Cabinet and a Health Minister to steer the country through these difficult times.

In the past week, Ghana missed a deadline to take over the operation and maintenance of the Ameri Plant. This was because of delay in undertaking Audit of the plant and indebtedness to Ameri. There is Union agitation at Tema Oil Refinery since the beginning of the year. The Refinery needs special attention from the government to determine the long-term viability of the Company. In recent weeks, most part of the country has experienced low voltage and power outages.

There are teething problems at Gridco and ECG which need immediate attention. We have just mentioned a few problems occurring in the energy sector in the month of January and the Institute believes that the lack of leadership can compound these problems to escalate.

INSTEPR strongly believes that the Transition Act 845, 2012 should be amended to remove section 13 (5) to replace it with the appointment of at least 5 substantive ministers for Finance, Health, Energy, Education, and Agriculture. Parliament will make the necessary provisions to vet and approve these ministers designate within the first 21 days of the new parliament. This will afford any new government to have leadership in key areas of our economy.

As it stands, Ghana Incorporated will have nothing to show for in the first quarter of 2021. The private sector looks to the government for stability and the uncertainty created by the current situation does not benefit Ghana. Our industry Barometer for the first quarter will now be published in the second quarter, June 2021.