John Abu Jinapor
The Minister of Energy and Green Transition, John Abdulai Jinapor, has inaugurated a committee aimed at overseeing the potential involvement of the private sector in the country’s power distribution sector.
Speaking at the event, the Minister emphasized that the government remains committed to reforming the energy sector, particularly in the area of distribution, and called for the private sector’s engagement to help drive efficiency and reduce losses.
“We made a promise to the people of Ghana, and we have been given an overwhelming mandate to execute it,” Mr. Jinapor stated, referencing the 2024 electoral victory that gave the NDC government a clear mandate to pursue necessary reforms in the energy sector. “His Excellency the President has reiterated his position on numerous occasions, and I, as the spokesperson for the Energy Team, stand firm in delivering on our commitment,” he added.
According to him, while the decision on the specific model for private sector participation is still under consideration, the primary purpose of the newly inaugurated committee is to engage in comprehensive consultations with stakeholders—ranging from consumers and industrial players to unions and technical experts—before advising the Ministry on the best way forward.
The Minister further stressed that local content participation would be a priority during the consultations and implementation process. “We have always advocated for local content participation, and we expect this to be a key consideration as the committee moves forward,” he said.
One of the major challenges facing the sector, Mr. Jinapor revealed, is the alarming rate of losses at the Electricity Company of Ghana (ECG). “ECG’s technical, commercial, and collection losses currently stand at around 40%. No utility in the world can survive such significant losses,” he remarked, pointing to issues such as inefficiencies at the Tema Harbour, where stranded containers have resulted in significant demurrage costs. “The current financial burden from demurrage alone is estimated at a staggering 1.5 billion cedis,” he stated.
The Energy Minister also noted the serious financial strain faced by the energy sector, which is carrying a debt of approximately $3 billion. He asserted that this debt, coupled with the ongoing challenges of paying Independent Power Producers (IPPs), has left the sector in a precarious situation. “If we don’t address the distribution sector, the entire power sector could collapse. The situation is urgent, and we must act swiftly,” he warned.
6-Member Committee
The committee, which consists of seasoned professionals with significant experience in the energy sector, will be led by Jabesh Amisah-Arthur, a respected figure in the industry. Other members include Mr. Benjamin Boakye, Dr. Shafic Suleman (Secretary), Dr. Simon Akorli, Ebenezer Baiden, Emma Akua Bulley, and Edward Abrokwah.
The Minister expressed confidence that the committee members, chosen for their integrity and expertise, would deliver the results needed for the sector’s transformation.
Mr. Jinapor appealed to the public to offer their support to the committee as it works toward finding a solution that benefits all stakeholders. He also pledged the government’s full support in ensuring the committee has the resources and backing necessary to accomplish its tasks.
“We are racing against time, and we must act with urgency to reform this sector. I believe that, with the committee’s work, we can turn things around,” he stated.
The committee has been given a timeline of one month to complete its consultations and make recommendations. However, the Minister acknowledged that if more time is needed, the issue would be reviewed.
By Ernest Kofi Adu