Energy Strategist, Dr. Yusif Suleman, has indicated that the generation shortfall that the Energy Sector is currently experiencing is due to a lack of financial resources to purchase feedstock for power generation, clarifying that the power generators have the ability to generate power.
He noted that the three value chains – generation, production, and distribution – in Ghana’s power sector are intricately linked so much so that a deficit in one affects all. He indicated that the Electricity Company of Ghana (ECG), which is the distributor, is the lifeline of the value chain.
“If ECG is not able to generate the required revenue to be able to feed the other two, we are going to have problems and that is what we have here. I cannot appreciate the inertia with respect to ECG’s front why they [ECG] cannot comply with this basic sentimental requirement [provision of timetable] with almost everybody saying that these are the issues on board and they cannot comply”.
Dr. Yusif Suleman
Furthermore, the Energy Strategist indicated, however, that while the ECG should be held responsible for its actions, the Company is not an independent entity, hence its mother institution, the Ministry of Energy should also be held accountable for the challenges in the power sector.
He noted that the ECG cannot disregard an order from the Energy Minister that directs it to provide a load-shedding timetable for the public, emphasizing that the reluctance on the part of the Energy Minister to demand such from the ECG amid constant power fluctuations is problematic.
Dr. Yusif Suleman argued that the fines imposed on the ECG by the Public Utility Regulatory Commission (PURC), are avoidable, emphasizing that the Cash Waterfall Mechanism (CWM) fine listed among the other fines is not a fine but a commitment that the ECG should have met without any imposition from the PURC.
“The money has been declared collected, they have a formula for distributing this money. Now this formula is supposed to be adhered to, as to why ECG has not adhered to it, nobody can understand” – Dr. Yusif Suleman
ECG’s Display Of Impunity
Moreover, Dr. Yusif Suleman argued the ECG could have avoided the GH₵ 36,000 data fine by negotiating with the PURC and explaining to it why such data cannot be provided to the regulator. He noted that the statements made by the ECG so far concerning the issue generally, are an ill-fated display of impunity.
“We have dumsor or erratic power supply, what is happening? If you look at that GH₵ 5.8 million, is a result of failure to adhere to this load shedding timetable request. It was simple, just adhere to that, come out with a timetable, ensure the people are able to plan their life, and you can’t do that”.
Dr. Yusif Suleman
He however emphasized that having a load-shedding timetable will not solve the power challenges the country is currently battling with. He maintained that the government must focus on minimizing the consequences of the constant power interruption by capitalizing on load management.
He emphasized that the incident where hospitals were unable to operate due to power disruption could have been avoided if there had been proper load management processes and a load-shedding timetable for hospitals to go by.
The Energy Strategist noted that the present issue reveals the lack of transparency and accountability in the operations of the ECG which highlights the importance of regulatory oversight to ensure that utility distributors comply with directives and provide accurate information.
As such, Dr. Yusif Suleman lauded the PURC for holding the ECG accountable for its actions, urging other agencies to do the same in similar situations to ensure that government institutions remain accountable for their actions and inactions as it will build and shape Ghana’s corporate governance positively.
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