Executive Director of the Institute for Energy Security (IES), Nana Amoasi VII, suggests revisiting the old agreement between the Electricity Company of Ghana (ECG) and Power Distribution Services (PDS) following the Public Utilities Regulatory Commission’s (PURC) concerns about ECG’s financial instability.
The previous concession deal between ECG and PDS was terminated after a forensic audit revealed issues with the Payment Security for the transaction.
Nana Amoasi advocates for reviewing the agreement with modifications to minimise risks and find a sustainable solution to ECG’s current challenges.
“All possible forms of private sector participation can be considered but we must revisit the situation again because things have worsened since we introduced the PDS-ECG arrangements.
So we should re-access and make sure that we take the right risk assessments and get a fair solution to that,” he said during an interview on Ghana Tonight.
Nana Amoasi VII believes that revisiting the concession between the Electricity Company of Ghana (ECG) and Power Distribution Services (PDS) could address ECG’s current financial challenges.
He stresses that private sector involvement is crucial for securing necessary funding. Although the initial PDS arrangement introduced billing and management expectations, it was dissolved due to questionable dealings.
His comments come after a Public Utilities Regulatory Commission (PURC) report highlighted ECG’s severe financial crisis, with revenue plunging below 42% of required funds, raising concerns about bankruptcy across the energy sector.