Honorary vice president of IMANI Ghana, Bright Simons, says his uniform has uncovered what appears to be another instance of preferential treatment and questionable deals in Ghana‘s energy sector.
The focus of scrutiny is Genser Energy, a private power producer that has allegedly secured advantageous agreements with the Electricity Company of Ghana (ECG) at the expense of fair market practices.
At the heart of the issue is the pricing disparity between what large mines in Ghana typically pay for high-voltage power and the rates at which Genser Energy is obtaining electricity from ECG.
While mines are accustomed to paying approximately 28 cents per kilowatt-hour (KWh), Genser has reportedly negotiated a deal to acquire power at a significantly reduced rate of 8.2 cents per KWh.
The concern deepens as it is revealed that Genser Energy benefits from heavily subsidized gas prices, courtesy of the Ghana National Petroleum Corporation (GNPC).
Despite market rates suggesting gas should be priced at around $7.5, Genser is allegedly receiving gas at less than $3, allowing them to generate electricity at a fraction of the expected cost.
This advantageous pricing structure raises questions about fair competition and market integrity, particularly when gas supplies are under strain.
The fear is that such deals could lead to power shortages, commonly referred to as ‘dumsor,’ as resources are diverted to fulfill Genser’s contracts instead of meeting the broader energy demands of the country.
IMANI Ghana and ACEP have long been vocal about the need for transparency and accountability in Ghana’s energy sector.
They argue that these sweetheart deals not only undermine fair business practices but also contribute to financial instability within the sector.
When power producers struggle to be paid and fuel procurement becomes challenging, the repercussions are felt nationwide, impacting both businesses and citizens alike.
The situation has prompted calls for a thorough investigation into the alleged preferential treatment extended to Genser Energy and similar entities.
Additionally, there are growing demands for reforms to ensure that such practices are curbed, and the energy sector operates on principles of fairness, sustainability, and accountability.
As Ghana navigates its energy challenges, the spotlight remains firmly on addressing these systemic issues to secure a reliable and equitable energy future for all.
See post below:
IMANI Ghana is investigating what looks like another sweetheart giveaway to Genser Energy. Mines in Ghana that want high-voltage power pay ~28 cents per Kwh. Genser has cut a deal with ECG to obtain power at 8.2 cents per Kwh. Genser's customers are large mines. Do the math! pic.twitter.com/J4s4vJtOZ6
— Bright Simons (@BBSimons) June 19, 2024
