Cabinet to decide ECG’s future soon, restructuring among options – Deputy Energy Minister
The future of the Electricity Company of Ghana (ECG) will soon be determined as the Ministry of Energy and Green Transition considers restructuring the power distributor to address persistent revenue losses.
A final decision is expected after Cabinet deliberations, Deputy Minister Richard Gyan-Mensah has said.
Speaking on JoyNews on Wednesday, April 3 2025, Mr Gyan-Mensah disclosed that a ministerial committee tasked with reviewing ECG’s operational challenges had submitted three reform proposals. Among them, the option of segmenting ECG’s operations has gained traction.
“The committee suggested three options. The first was to place ECG under a full concession, where its entire operations and administration would be handed over to a private entity,” he said.
The second option, which appears to be the preferred choice, involves breaking up ECG’s operations either by geographical regions or functional areas.
“This approach would allow multiple private players to manage different aspects of ECG’s operations,” Mr Gyan-Mensah explained. “Government assets would be leased to these entities, but whether ECG would be divided into northern, southern, and middle zones or structured differently is yet to be decided.”
Dr Steve Manteaw, Chairman of the Ghana Extractives Transparency Initiative, who also spoke during the interview, backed this approach, particularly in tackling revenue collection challenges.
“We support the second option, where different jurisdictions are created and managed by Ghanaian private entities. This will improve metering and bill collection,” Dr Manteaw said.
He added that under this arrangement, “if there are any revenue losses, they will be the responsibility of the private operator, not the government.”
Mr Gyan-Mensah assured ECG workers that job security would be a major consideration in the reforms, acknowledging concerns about possible layoffs.
“We understand that workers are worried about job security, and their welfare will be protected in whatever model is adopted,” he said. “We will also assess which option best serves Ghanaians.”
Dr Nii Darko Asante, a former board member of the Public Utilities Regulatory Commission, stressed the importance of improving revenue collection, noting that commercial losses make up a large portion of ECG’s financial shortfall.
“The priority should be on metering and collections. With some investment, ECG can also address technical losses by upgrading transformers, lines, and other equipment,” Dr Darko said.
A final decision on the restructuring is expected within a week after further consultations with stakeholders.
The ministry is also working with security agencies to recover missing ECG equipment, with Mr Gyan-Mensah confirming that some stolen cables had already been intercepted in Tema.
