Energy and Green Transition Minister Dr John Abdulai Jinapor has called on the Public Utilities Regulatory Commission (PURC) to strengthen its oversight of the commercial operations and revenue mobilisation activities of the Electricity Company of Ghana (ECG).
Dr Jinapor said ECG’s ability to collect revenue efficiently is crucial to the financial stability of Ghana’s energy sector, as funds generated by the power distributor play a major role in ensuring that other participants in the electricity supply chain are paid.
The Energy Minister made the call during the commissioning of a new PURC office in Accra, where he described ECG as a critical component of the financial value chain of Ghana’s electricity sector.
Jinapor highlights ECG’s role in energy sector finances
According to Dr Jinapor, the financial performance of ECG directly affects the ability of power producers and other stakeholders to receive payments.
He therefore urged PURC to pay closer attention to ECG’s commercial performance, revenue collection and financial management, stressing that improvements in these areas are essential to restoring long-term stability in the power sector.
The Minister also called for stronger regulation and enforcement across Ghana’s utility sector, even when tougher regulatory measures face resistance from affected stakeholders.
He noted that effective enforcement is necessary to ensure that utility companies meet their obligations and operate in a manner that supports the sustainability of the energy sector.
PURC urged to strengthen regulation of utilities
Dr Jinapor encouraged PURC to intensify its monitoring of all utility companies, with particular attention to their commercial operations.
He said the regulator must ensure that electricity and other utility providers are held accountable while also protecting consumers and supporting the overall financial health of the sector.
“Intensify scrutiny of all the utilities, particularly their commercial performance. When I say this, I zero down on ECG because ECG is the key link when it comes to the financial value chain of the energy sector,” he said.
He stressed that without adequate revenue collection, the government and other energy sector participants could face difficulties meeting their financial obligations.
“If they don’t get the money, it will be difficult to pay,” Dr Jinapor warned.
Tougher enforcement needed in power sector
The Energy Minister acknowledged the progress being made in Ghana’s energy sector but urged PURC to further strengthen its regulatory framework and enforcement mechanisms.
He recognised that stricter regulation could sometimes generate resistance from utility providers and other stakeholders but said enforcement remained necessary to achieve the regulator’s objectives.
“We are making significant progress, but I would urge you to strengthen the regulation of your sector,” he said.
He added that regulators must be prepared to take difficult decisions when necessary to improve accountability and performance within the utility sector.
PURC asked to engage consumers and support 24-hour economy
Dr Jinapor also urged PURC to deepen its engagement with consumers and increase the visibility of the regulator across the country.
He said stronger communication between PURC, utility companies and consumers could help improve service delivery, resolve complaints and promote greater accountability.
The Minister further encouraged the regulator to support industrial competitiveness as the government implements its 24-hour economy programme.
A financially sustainable electricity sector, he said, would be important to businesses and industries that require reliable and affordable power to operate around the clock.
The call for increased scrutiny of ECG forms part of broader government efforts to improve Ghana’s electricity supply, revenue mobilisation, utility regulation and energy sector financial sustainability.
Source: newsthemegh.com