Stakeholders in the energy sector are calling for the swift implementation of a “Gas Act,” describing it as a catalyst for driving the sector forward.
The Gas Act, if implemented, would provide guidelines for all stakeholders in the energy sector.
Speaking at the 2024 stakeholders’ roundtable under the theme, “Building an Effective Gas Sector Revenue Management System: The Role of Stakeholders”, they emphasised the need for access to capital, particularly in Africa, where infrastructure development is capital-intensive.
The participants recommended measures to improve the Cash Waterfall Mechanism, CWM to enhance the financial stability of the energy sector.
Other recommendations included implementing cost-reflective tariffs, enhancing revenue collection and strengthening debt management strategies.
They also advocated institutional reforms, promotion of private sector participation, improving financial transparency, and enhancing energy efficiency.
The Chief Executive Officer of Ghana National Gas Limited Company, Ben K. D. Asante, was keen about the future of Ghana Gas.
“If you are going to be having a facility or infrastructure, you need access to capital, particularly in our part of the world, and then, develop the secondary market.
“So, currently, we use about 85–90% of our gas for power generation, but we also need to accelerate the use of gas for non-power applications and, last, but not least, the Gas Act,” he stressed.
Mr. Asante equally advocated for increased private sector participation, access to finance, and local content provisions to build capacity and ensure sustainability.
Deputy Minister of Energy, John Kobina Abbam Aboah Sanie emphasized the need for gradual tariff adjustments to reflect true service costs, targeting subsidies for vulnerable groups.
The Minister for Public Enterprises, Joseph Cudjoe, said privatization of the revenue collection aspect of ECG will make the energy sector robust.
“As you see MTN growing, nobody, no citizen, is bringing any pressure to bear on the government that MTN should give us data, that MTN should give us airtime. But when it comes to electricity, we plug in and join and when it comes to the pricing and paying for the service, they will put the pressure on the government.
“So all citizens, we should also be engaging our thinking. What do we want? So far as electricity as a product or a service is concerned, we should also be involved and think through it rightly,” Cudjoe asked.
The roundtable discussion also had in attendance some members of the mines and energy committee of parliament.
