Senior Oil Production specialist and Energy Analyst, Dr. Yussif Sulemana, has indicated that the debt of ECG, if not solved will drain the other power production and distribution value chains linked to ECG.
Speaking in an interview with The Vaultz News on the debt accumulation by ECG,;he explained that the power sector has three components which are intricately linked. So, any inefficiencies that are linked to one section will have dire consequences on other sections.
“Within the power sector we have three main sections. We have the generation , transmission and distribution and these components are intricately linked.”
Dr. Yussif Sulemana
In this regard,;he suggested the liberalization of the component of distribution at ECG in the power generation sector,;relating it to the fact that the current distribution model being used is not sustainable. This, he explained, should be opened up for private sector participation.
He also suggested the creation of alternative value chains for customers so ECG would not be the only place for the purchase of power.
“I think if we are able to get another[company] where customers can get power aside ECG, I think it will propel them to sit up and be more efficient. Because what we need right now is to make ECG efficient and if these loopholes are plugged,;I believe it will inure to the benefit of the end user.”
Dr. Yussif Sulemana
Alternative value chain to bring competitiveness
Dr. Sulemana was also of the view that the alternative value chain will bring about competitiveness and help drive the nations quest towards industrialization. However, he said, if there is no competition it will impede industrialization in the country.
“The indebtedness of the ECG is deplorable but not surprising. So, the high time we take it seriously to debottleneck the issues within this value chain, the better for the nation.”
Dr. Yussif Sulemana
Touching on the lack of monitoring of procurement of the prepaid meters which has resulted in the debt,;he posited that it is due to structural weakness and waste in the system.
He also suggested the debt accumulation could be;as a result of internal and external checks and balances that is not available. He then described the procurement of the unused meters as wastage because it has not been put to use and described ECG as a money draining entity.
“ECG could be a money-making entity for Ghana but if it is not done well, it could be a money-draining entity. There’s lack of checks which has resulted in the structural weakness. Because why do you procure something that you don’t need immediately for use.”
Dr. Yussif Sulemana
Systems must be in place during procurement
Dr. Sulemana further urged for systems to be put in place to ensure that procurement bridges are curtailed.
He further averred that for the power generation to be profitable,;it will be dependent on the robustness of the distribution value chain.
“And now as we speak;the distribution value chain is very porous because of the gross inefficiencies of the ECG. And until we inject efficiencies into the system of ECG,;the debt portfolio will only grow.”
Dr. Yussif Sulemana
He urged for the current and tariff structure of the PURC to be looked at.
