ACEP Boss Warns of Persistent “Dumsor” Over Continuous Mismanagement of ECG, Power Sector
Ghana faces a future of recurring power outages, known locally as “Dumsor,” unless the country’s energy sector undergoes urgent reform, warns Ben Boakye, Executive Director of the Africa Centre for Energy Policy (ACEP).
In an interview with NorvanReports at the October 2024 IMF and World Bank Annual Meetings, Mr Boakye criticized the mismanagement of the Electricity Company of Ghana (ECG), further asserting that inefficiencies in the power sector are worsening by the day, threatening to further destabilize an already fragile economy.
Mr Boakye’s primary concern lies with ECG’s failure to meet its revenue collection targets. The company currently collects approximately GHS 800 million per month, significantly below the GHS 2 billion needed to sustain operations and meet its obligations.
This shortfall, he noted, exists despite a growing customer base and tariff increases. “New customers have been added to the grid, and more people are on prepaid systems, but ECG’s revenues remain stagnant. The numbers don’t add up,” he remarked.
Mr Boakye pointed out that while ECG struggles to collect enough money to cover operational costs, the State is left to pick up the bill. He cited the example of Asogli Power, an independent power producer that temporarily shut down operations due to non-payment, forcing the Ministry of Finance to make an emergency $30 million payment.
He, however, argued that such financial interventions are unsustainable, diverting funds from critical development projects like hospitals, schools, and infrastructure.
The Executive Director of ACEP, also highlighted widespread issues in procurement and contract management within the power sector. “For us as policy analysts, we are not interested in government paying for electricity that people have consumed. We are interested in fixing the problem. But the problem is not getting fixed because of the politicians, because that’s where they benefit. They benefit from procurement contracts at ECG and the inefficiency at ECG is actually a diversion of resources into pockets,” he remarked, adding that the mismanagement is fueling corruption and preventing meaningful reforms.
The broader impact of these issues is evident in the energy supply chain as gas supplier ENI, has reduced production due to ECG’s inability to meet its payment obligations, exacerbating the country’s energy crisis.
Looking ahead, Mr Boakye called for urgent reforms to address these systemic failures urging civil society organisations, the media, and citizens to take a more active role in holding ECG and the government accountable.
“It’s time to fix the problem, not just pay the bills. Without real change, Ghana will continue to sacrifice development for electricity (sic),” he concluded.
