Energy policy expert slams govt’s approach to power crisis, calls for structural reforms

Kodzo Yaotse, an energy policy expert at the African Center for Energy Policy (ACEP), has issued a strong critique of the Ghanaian government’s management of the ongoing national power crisis.

Speaking after a media session on Ghana’s utilization of Special Drawing Rights (SDR) on Monday, Yaotse underscored several systemic issues undermining the energy sector and demanded urgent actions to enhance efficiency and accountability.

During the interview at ACEP, he refuted the claims by the Electricity Company of Ghana (ECG) that attributed the frequent power disruptions to faulty transformers.

Instead, Yaotse revealed that the core problem is the underutilization of power plants that have been rendered inactive due to financial and fuel shortages.

“We have plants ready to produce power, but there is no fuel for them,” Yaotse stated, explaining that this shortfall has necessitated load management strategies, leading to blackouts across various regions to prevent grid collapse.

The energy policy expert criticized the authorities’ reluctance to own up to these load management measures, which, he argues, have precipitated a critical situation where even essential services like hospitals are at risk of losing power.

He lambasted the ECG’s monopoly over the power sector, accusing it of failing to prioritize consumer needs and suggesting that private sector participation could lead to more efficient management.

Amidst discussions about private sector involvement, Yaotse condemned the use of the Energy Sector Levies Act (ESLA) as ineffective. He described it as a temporary fix that fails to address the underlying issues of the crisis.

“It’s now just a band-aid on a bullet wound. We’re paying interest on bonds issued to clear old debts, but this does nothing to tackle the root causes of our current problems,” he argued.

Kodzo Yaotse called for a radical overhaul of the energy sector and emphasized the need to detach political influence from technical management and revamp revenue collection mechanisms to ensure the sector’s financial sustainability.

According to him, such changes are essential for providing consistent liquidity across the energy value chain and maintaining the system’s viability.