On April 20, 2024, three issues were discussed on the Key Points show.
There were; ECG Board challenges constitutionality of PURC fine over service delivery breaches, Government commissions relocated Ameri Power Plant and sentencing of former MASLOC CEO and fight against public sector Corruption.
Here are 14 Key Points discussed on the show:
- GRIDCO, BUI POWER, NEDCO, ECG will undergo merger – Kwadwo Poku
Energy expert and chairman of the energy subcommittee for the NPP 2024 Campaign, Kwadwo Nsafoah Poku, has stated that cabinet has approved a merger of some entities in the power sector for supply efficiency and possible private sector participation.
They include the Ghana Grid Company Limited (GRIDCo), Bui Power, the Northern Electricity Distribution Company (NEDCO), and the Electricity Company of Ghana (ECG).
The energy expert, however, maintained that the privatisation of GRIDCo and the Volta River Authority (VRA) cannot be “a wholesale sale of those entities” because of the technical and the monopoly role they play.
“There is a lot going on…NEDCo and ECG there is a cabinet approval for the two to be merged. Then there is also a cabinet approval for VRA hydro and BUI [power] Authority to become one. So, you’re going to have BUI Authority and VRA as one entity.
“The government has stripped the VRA thermal as a separate entity,” he said, adding that when all the parliamentary processes are done, there will be a single entity representing Bui Power Authority and Volta River Authority.
“And we are going to have ECG and NEDCo as one entity and these are things that the government has given a cabinet approval for these processes to go ahead,” said Mr. Nsafoah.
He further indicated that the government must streamline the roles of an entity like the GRIDCo. According to him, this will allow for some form of privatisation but not necessarily “selling them 100 percent.”
2. ECG has its own arrangements with IPPs for power – Kwadwo Poku
Kwadwo Nsafoah Poku, an energy expert and member of the energy committee of the NPP 2024 manifesto, has revealed that the power distributor, the Electricity Company of Ghana (ECG), has arrangements with the independent power producers (IPPs) for power to serve its customers.
He therefore backed the ECG for disagreeing with the Ghana Grid Company Limited (GRIDCo) on the issue of the publication of a load-management schedule.
GRIDCo, in a March 28 statement, reported ECG to the sector minister, Matthew Opoku Prempeh for the power distributor’s failure to comply with a load-management schedule from the systems manager.
“ECG had their own power purchase agreement within which they operate, and they have arranged and signed off in agreement with these independent power producers (IPPs). If at any point in time these IPPs are generating far in excess of what you need for your concessionary area, then somebody calls you to tell you that you need maybe 2000 megawatts for your concessionary area, the power purchase agreement you have signed with the IPPs are producing 3000, but you, that you only need 2000 that you signed agreement, manage load of let’s say 200 megawatts.
“ECG is saying that why should I manage the load because my contractual obligation is being met and I should be able to get power for my customers,” he explained.
3. Dumsor: A lot goes into drawing load-shedding timetable – Kwadwo Poku
An energy expert and a member of the energy committee of the NPP 2024 Campaign team, Kwadwo Nsafoah Poku, has asserted that the Electricity Company of Ghana (ECG) does not merely publish a load-shedding (dumsor) timetable, indicating that a lot goes into the drawing of a load-management schedule.
He emphasised that the power distributor requires a lot more time to put together a schedule for the public. He cited the ECG’s statement, which noted that the Ghana Grid Company Limited (GRIDCo) gives ECG limited timelines in notifying it of generation shortfalls to their bulk supply points (BSPs), which results in dumsor.
Kwadwo Poku made the assertions when contributing to efficiency in power supply discussions.
Responding to private legal practitioner Martin Kpebu’s comments that producing a timetable is not “rocket science,” he quizzed, “Does he know what goes into process to give a timetable?…it is not just a mere timetable; there is a lot that goes into that thing before,” he stated.
“You have seen the documentation that has gone to show whatever GRIDCo, who wields the power and manages the grid, informs ECG, ECG has come out to say that they give them about one hour to three hours notice when they are having challenges with the frequency on their part,” said the energy expert.
4. ‘Our prison conditions are terrible’ – Kpebu on quest to extradite convicted MASLOC CEO
A private legal practitioner, Martin Kpebu, has underscored the need to improve conditions in Ghana’s prisons.
According to him, the prevailing conditions in the country’s prisons leave much to be desired.
“Our prison conditions are terrible, and I am surprised politicians from left, right and centre are not doing anything about it because they are the people who will soon go there,” Mr Kpebu said.
He made the comment while discussing the possibility of the convicted Chief Executive Officer of the Microfinance and Small Loans Centre (MASLOC), Sedina Tamakloe, being extradited from the US to serve her sentence in Ghana.
Mr Kpebu contended that the poor conditions in Ghana’s prisons is enough grounds for any quest to have her extradited to fail.
“At the UN level, they’ve discussed it. There are several reports that go against us in respect of our prison conditions, overcrowding etc. Yes, that is law. You can’t subject people to so much inhuman conditions. The fact that they’ve committed crime does not mean that apart from serving the term, you should subject them to inhuman conditions. Article 15 of our Constitution is against that,” he emphasized.
5. Prison conditions: We can’t say Ghana’s should be elevated to one prisoner in a room with TV – NPP comms team member
A private legal practitioner, Kingsley Amoako-Boadu, has said that it will be unrealistic for anyone to assume that conditions in Ghana’s prisons could be improved to a level comparable to that of the US.
According to him, such an expectation is farfetched.
“If any court is going to use the conditions of our prisons to deprive anyone from being extradited, we should also look at the context in which Ghana is situated and say that this is the Ghanaian kind of prison. So, you cannot say that you want it, because there are prisons there [in the US] that is one in a room with TV and what not. We cannot say that where Ghana has reached now, we should elevate our prisons to that. So, if we don’t meet that, the person should not be extradited. I think it should be on case-by-case basis,” he said.
His comments were in reaction to an assertion by another private legal practitioner, Martin Kpebu that it is possible for the convicted former Chief Executive Officer of the Microfinance and Small Loans Centre (MASLOC), Sedina Tamakloe to be made to serve the jail term in the US due to Ghana’s poor prison conditions.
6. Jail term starts immediately Sedina Tamakloe arrives in Ghana – Lawyer on MASCLOC CEO’s sentence
A private legal practitioner, Kingsley Amoako-Boadu, has said that the jail sentence imposed on former Chief Executive Officer of the Microfinance and Small Loans Centre (MASLOC), Sedina Tamakloe will take effect immediately she arrives in Ghana.
He explained that in so far as she is not available within the jurisdiction of Ghana, the sentence can only commence when she arrives.
“The jail term starts when she arrives in Ghana. Then she wouldn’t have served. If she takes 20 years, anytime she arrives at any of the ports, it starts,” he said.
Touching on the possibility of she being made to serve the jail term abroad due to Ghana’s poor prison conditions, the NPP member said, “If any court is going to use the conditions of our prisons to deprive anyone from being extradited, we should also look at the context in which Ghana is situated and say that this is the Ghanaian kind of prison. So, you cannot say that you want it, because there are prisons there that is one in a room with TV and what not. We cannot say that where Ghana has reached now, we should elevate our prisons to that. So, if we don’t meet that the person should not be extradited. I think it should be on case-by-case basis.”
Madam Tamakloe was sentenced to 10 years imprisonment for causing financial loss of GHC90 million to the state. The jailing of Madam Tamakloe was done in absentia as she sought permission from the court to travel to the US for medical treatment.
7. You can’t privatise ECG, VRA, GRIDCo for security reasons – Bawa
The Ranking Member on the Energy Committee of Parliament, Edward Bawa has explained that the state’s power generation and distribution outlets cannot be privatised due to the security implications.
He said power generation for economic development is so vital that it cannot be placed solely in the hands of private entities.
“For security reasons, you cannot privatise ECG, VRA and GRIDCo. You can make the private sector play a part, but you can’t hand over everything,” he said.
The topic for discussion was the suggestion by the Asantehene Otumfuo Osei Tutu II, that government must focus on formulating policies for effective governance of the various sectors of the economy.
Speaking during the commissioning of a 430-kilometre natural gas pipeline by Genser Energy, in Kumasi on Wednesday, April 17, he said “It’s about time that the government realizes that it’s not going to work for the government to be involved in setting up companies without involving the private sector, it doesn’t work. The government should concentrate on policies and involve the private sector and you can attract more investors into the country which will create more employment.
“VRA and others are all government establishments, let’s give it out and diversify them into the private sector and get more money there and get the right people to do it. GRIDCo and others let’s give them the money and get the qualified people, diverse government from it and let them work. Electricity Company is in a situation where we don’t know, but that also must be diversified and given to the private sector.
However, Mr Bawa stressed that a Public-Private-Partnership (PPP) is the way to go.
8. I agree with Otumfuo; there are many more state-owned enterprises that must be privatised – Kwadwo Poku
Energy Expert Kwadwo Poku has said he agrees with the call by the Asantehene to privatise the Electricity Company of Ghana (ECG), Volta River Authority (VRA), and the Ghana Grid Company Limited (GRIDCo).
In his view, there are many more state-owned enterprises that must be privatised.
“I agree with the Asantehene. There are many more state-owned enterprises that I think must be privatised.
“I am for the divestiture of some state-owned enterprises. However, before you can list them, the company should be making profit. You cannot list an unprofitable organization on the stock exchange,” he said.
Speaking during the commissioning of a 430-kilometre natural gas pipeline by Genser Energy, in Kumasi on Wednesday, April 17, he said “It’s about time that the government realizes that it’s not going to work for the government to be involved in setting up companies without involving the private sector, it doesn’t work.
“The government should concentrate on policies and involve the private sector and you can attract more investors into the country which will create more employment.
“VRA and others are all government establishments, let’s give it out and diversify them into the private sector and get more money there and get the right people to do it. GRIDCo and others let’s give them the money and get the qualified people, diverse government from it and let them work.
“Electricity Company is in a situation where we don’t know, but that also must be diversified and given to the private sector.
“Why are we still holding on when we don’t have the money? We’re not able to collect all the taxes we want, we’re going to IMF and all those for money. We’re hanging onto industries we cannot maintain and run.”
He added “It’s about time we face reality and decide on what government should be doing and what the private sector should be doing. This is a testimony of the private sector, and they were able to attract investors.”
9. You can’t privatise ECG, VRA, GRIDCo for security reasons – Bawa
The Ranking Member on the Energy Committee of Parliament, Edward Bawa has explained that the state’s power generation and distribution outlets cannot be privatised due to the security implications.
He said power generation for economic development is so vital that it cannot be placed solely in the hands of private entities.
“For security reasons, you cannot privatise ECG, VRA and GRIDCo. You can make the private sector play a part, but you can’t hand over everything,” he said.
The topic for discussion was the suggestion by the Asantehene Otumfuo Osei Tutu II, that government must focus on formulating policies for effective governance of the various sectors of the economy.
Speaking during the commissioning of a 430-kilometre natural gas pipeline by Genser Energy, in Kumasi on Wednesday, April 17, he said “It’s about time that the government realizes that it’s not going to work for the government to be involved in setting up companies without involving the private sector, it doesn’t work. The government should concentrate on policies and involve the private sector and you can attract more investors into the country which will create more employment.
“VRA and others are all government establishments, let’s give it out and diversify them into the private sector and get more money there and get the right people to do it. GRIDCo and others let’s give them the money and get the qualified people, diverse government from it and let them work. Electricity Company is in a situation where we don’t know, but that also must be diversified and given to the private sector.
However, Mr Bawa stressed that a Public-Private-Partnership (PPP) is the way to go.
10. It’ll be suicidal, a threat to national security if private sector controls ECG, VRA, GRIDCo – Bawa
Bongo lawmaker, Edward Bawa has said that handing over the management of the Electricity Company of Ghana (ECG), Volta River Authority (VRA), and the Ghana Grid Company Limited (GRIDCo) to the private sector will be suicidal for the country.
In his view, such an action will threaten the security of the nation.
“I respectfully disagree with Otumfuo, that would be suicidal, there is no country that would do that. GRIDCo can’t be given to the private sector.
“Let us not contemplate making the private sector control our power system, that will be suicidal,” he said.
He added “For security reasons and strategic reasons, you can’t do that, the VRA can be there but let the private also come in. Even if it will be done at all it should be done in a transparent manner, we should not do it like the PDS.”
The Asantehene, while justifying his call said that privatizing these institutions will make these institutions function as expected of them.
11. Otumfuo made a good call to privatise ECG, VRA, GRIDCo; let’s isolate politics from power sector – Ben Boakye
Executive Director of the Africa Centre for Energy Policy (ACEP), Ben Boakye has said the call by the Asantehene to privatise the Electricity Company of Ghana (ECG), Volta River Authority (VRA), and the Ghana Grid Company Limited (GRIDCo) is a good call.
However, he said, there is more to it than just making these institutions controlled by the private sector.
He called for the isolation of politics from the power sector.
“It is a good call, but it is way more than that, we have to ensure that how we did with PDS does not happen.
“Let us isolate politics from it, bring in the private sector so that the state can control them,” he said.
The Asantehene, while justifying his call said that privatizing these institutions will make these institutions function as expected of them.
12. I disagree with Otumfuo on call to privatise GRIDCo, ECG , VRA – Edward Bawa
Bongo Member of Parliament Edward Bawa has said he disagrees with the call by the Asantehene to diversify the Electricity Company of Ghana (ECG), Volta River Authority (VRA), and the Ghana Grid Company Limited (GRIDCo).
In his view, it would be suicidal to hand over the power sector to private persons.
“I respectfully disagree with Otumfuo, that would be suicidal, there is no country that would do that. GRIDCo can’t be given to the private sector.
“Let us not contemplate making the private sector control our power system, that will be suicidal,” he said.
The Asantehene, while justifying his call said that privatizing these institutions will make these institutions function as expected of them.
13. You can’t list an unprofitable company on Stock Exchange – Energy expert on Asantehene’s suggestion to privatise ECG, VRA, GRIDCO
An energy expert, Kwadwo Nsafoah Poku, has stated that it is not feasible to list an unprofitable company on the Ghana Stock Exchange.
According to him, such a venture will not yield the desired outcome.
“I agree with the Asantehene. There are many more state-owned enterprises that I think must be privatised. I am for the divestiture of some state-owned enterprises. However, before you can list them, the company should be making profit. You cannot list an unprofitable organization on the stock exchange,” he said.
Mr Poku who is the Chairman of the Dr Bawumia’s Manifesto Committee, said this in response to a suggestion by the Asantehene, Otumfuo Osei Tutu II that government should focus on formulating policies to improve various sectors of the economy.
Speaking during the commissioning of a 430-kilometre natural gas pipeline by Genser Energy, in Kumasi on Wednesday, April 17, he said “VRA and others are all government establishments, let’s give it out and diversify them into the private sector and get more money there and get the right people to do it. GRIDCo and others let’s give them the money and get the qualified people, diverse government from it and let them work. Electricity Company is in a situation where we don’t know, but that also must be diversified and given to the private sector,” The Otumfuo suggested.
Energy Expert and a member of the manifesto drafting committee of the New Patriotic Party (NPP), Kwadwo Poku, has observed that the power situation in the country has improved massively.
He noted that a few areas of the Greater Accra region are experiencing power cuts due to localized problems.
“There are localized problems,” he reminded Ghanaians.
He added “the power situation has improved, two days ago there was a power trip in Tema, and when these things happen, they create a few pockets of problems but it has improved massively.”
Mr Kwadwo earlier assured that the power cuts being experienced by Ghanaians in most parts of the country would be over before the month of April.
He says the managers of the power sector know what the problem is and are resolving it.
He indicated that the issue has to do with maintenance work being undertaken by the Electricity Company of Ghana and also the West Africa Gas Pipeline Company (WAPCo) which reduced the flow of gas to Ghana.
NB: With additional files from Laud Nartey and Emmanuel Kwarteng.