The Minister of Energy and Green Transition-designate, John Abdulai Jinapor, has given the indication that government may be considering privatising some operational aspects of the State-owned Electricity Company of Ghana (ECG) to bring efficiency to the revenue mobilisation drive of the company. According to him, the energy sector needs a private sector participation at the distribution level in order to plug the revenue losses of ECG noting that ECG’s losses at around 40% comprises 23% technical and the remaining being commercial. He made this known when he took his turn on Monday at the confirmation hearing of President Mahama’s first 3 ministerial nominees in Parliament.

He said government will soon establish a 7-member committee to be made up of industry experts and even someone from the consumer side to recommend a framework looking at best practices of privatising aspects of ECG’s operations. The committee’s work would be independent without political interference to “get the framework in a more transparent, open, and frank manner”, he added.

“We are not going to do sole sourcing when it comes to the ECG private sector participation. Competitive tender process with some element of private sector participation using local content, and then we set the KPIs so we make progress. So, we are clear in our minds what we intend to do.”, He continued

Mr. Jinapor (MP, Yapei/Kusawgu) underscored the need to phase out postpaid meters as part of improving revenue collection by ECG. He further suggested smart meters in that regard while acknowledging the high need for meters by consumers. With 5.2 million meters in circulation, only 4.8 million are actively working. About 3 million are not properly working and 2.9 million meters are needed to satisfy the market.

“People want meters. They are unable to get the meters. Technology is advancing. So, we are exploring the possibility of selling the meters. Let people buy the meters but through smart technology, we will licence some people to install the meters. But you will need to send a code. Once you send a code, the mobile money is activated. And automatically, you are registered onto the system.”