Energy Sector Reset Must Begin With Transparency and Enforceable Governance Reforms – NRGI Country Director
Country Director of the Natural Resource Governance Institute (NRGI), Patrick Stephenson, has called for an immediate transparency-led reset of Ghana’s energy sector, warning that without strong institutional safeguards, the sector risks sliding back into the circular debt crisis.
Speaking during a NorvanReports and Economic Governance Platform (EGP) X Space discussion on “Energy Sector ‘Reset’: Will It End the Circular Debt or Recreate It?”, Mr. Stephenson proposed a 90-day transparency timeline, beginning with the publication of all renegotiated energy sector contracts.
He argued that limited public access to contract details continues to undermine accountability, making it difficult for civil society and citizens to scrutinise clauses that have historically locked the sector into financially unsustainable arrangements.
“Publishing all negotiated contracts within a defined 90-day period would be a critical first step to ensure transparency and prevent a return to the practices that brought us here,” he said.
Mr. Stephenson stressed that transparency is not only a governance issue but a public interest imperative, noting that citizens have a right to know how public resources are committed and managed within the energy value chain.
Beyond contract disclosure, he called for the introduction of clear performance metrics and enforceable key performance indicators (KPIs) for energy sector institutions, particularly the Electricity Company of Ghana (ECG).
According to him, past failures in enforcing the cash waterfall mechanism were largely driven by weak accountability, with no meaningful sanctions for non-compliance by sector managers and boards.
“We need proper KPIs with consequences attached. If management or board members do not comply, there must be sanctions. Without that, the system will always be vulnerable,” he stated.
Mr. Stephenson noted that the current functioning of the cash waterfall mechanism is not the result of technical innovation but simply adherence to existing rules, warning that such gains could easily be reversed without strong institutional design.
“Nothing magical is happening. Someone has decided to follow the rules. The challenge is how we design institutions so that it becomes difficult for anyone to abandon those rules in the future,” he said.
He also highlighted the need for stronger institutional coordination between ECG, Independent Power Producers (IPPs) and other sector players to prevent a recurrence of inefficiencies that previously led to debt accumulation.
According to him, poor coordination and discretionary spending by ECG in the past diverted resources away from meeting power generation obligations, worsening sector liabilities.
Mr. Stephenson further urged policymakers to consider the broader impact of energy sector reforms on consumers, particularly issues of affordability, service quality and metering accuracy.
He also questioned procurement practices around metering contracts, stressing the need for transparency to ensure meters are properly calibrated and capable of accurately measuring consumption.
Mr. Stephenson concluded that technical reforms alone will not secure long-term stability in the energy sector unless they are embedded within a governance framework.
