Richard Asante Yeboah (right) speaking at the event
A group calling itself Coalition Against Concession of the Electricity Company of Ghana (ECG) has accused the Millennium Development Authority (MiDA) of impersonating the Energy Commission and the Public Utilities Regulatory Commission (PURC) in the privatization of the Electricity Company of Ghana (ECG).
Richard Asante Yeboah, convener of the group, speaking at a stakeholders’ press conference recently in Accra, said the coalition had intercepted documents prepared by MiDA and International Finance Corporation (IFC) on tariff adjustments, which by law ought to be done by the PURC.
He said the role of MiDA in the whole privatization was scandalous and therefore the entire process should be abolished for further consultation.
The tariff adjustment document, which was made available to BUSINESS GUIDE, was a ‘Draft Tariff Methodology’ on the concession for the management and investment in the Electricity Distribution Business of the ECG.
The document, which was prepared by MiDA and its Transaction Advisor, IFC, proposed rates that would be charged for electricity services.
PURC Angry
However, PURC, upon chancing upon the document in circulation, wrote to the Authority to express its displeasure about the alleged illegal act.
It also reminded the Authority that the Commission has the sole mandate to fix utility tariffs in the country.
The Commission, in a letter written to MiDA, warned MiDA and IFC to take immediate steps to withdraw the document in circulation and take appropriate measures to avoid re-occurrence of the same situation in future.
Issuing of licence
This paper also sighted another MiDA draft document on Electricity Distribution and Sales License bearing the logo of the Energy Commission (EC).
The Energy Commission has been mandated under the constitution to ensure electricity distribution and sale of licence.
The Commission, after intercepting the documents, expressed dissatisfaction with the action of MiDA and IFC and disassociated itself from the document in circulation.
“We wish to request MiDA to take immediate steps to withdraw the said document in circulation and put measures in place to ensure that this does not happen again in future,” the Commission said in a letter written to the Authority.
Workers of ECG, who took part in the stakeholders’ conference, urged government to look at other alternatives for private sector participation.
Government sued
Meanwhile, an advocate for the protection of public property has filed a suit at the High Court seeking to stop the proposed Private Sector Participation (PSP) in ECG.
The plaintiff, Saaka Salia of Kotobabi, Accra, wants the court to compel the authorities to suspend the process because of fraud and breaches of some laws.
He has cited the Attorney General, MiDA, PURC and the Energy Commission as defendants.
Five members of the Convention People’s Party (CPP) have also sued MiDA over the privatization of ECG.
The five persons, in their statement of case, said it was risky to entrust the administration of ECG into the hands of a private company since electricity is a security asset of gross national importance and value.
Currently, MiDA has shortlisted six companies for the takeover of ECG.
By Cephas Larbi