Alexander Afenyo-Markin proposes three major reforms to stabilise ECG

Minority Leader Alexander Afenyo-Markin has challenged the Electricity Company of Ghana (ECG) to abandon its reliance on frequent electricity tariff increases in favour of deep-seated structural reforms. Speaking during an engagement with ECG management and former executives, Afenyo-Markin argued that price adjustments alone cannot resolve the utility provider’s financial distress. He emphasized that the company must instead prioritize revenue collection, financial discipline, and the aggressive reduction of operational losses to ensure long-term sustainability.

The Minority Leader outlined three priority measures intended to stabilise the energy sector’s financial health. These include the strict enforcement of the Cash Waterfall Mechanism to ensure transparent revenue distribution and the renegotiation of legacy power purchase agreements (PPAs) to reduce excessive financial obligations. Additionally, he called for a mechanism for the timely settlement of public-sector electricity bills, involving clear verification and oversight to prevent the further accumulation of government debt to the utility.

The engagement followed a luncheon hosted by ECG management to recognise Afenyo-Markin’s brief but impactful tenure as the company's Board Chairman. During the meeting, ECG officials commended his focus on enhancing accountability and operational efficiency. However, the discussions also highlighted the magnitude of current challenges. While the ECG has reported revenue growth and a reduction in losses, management noted that these gains were significantly influenced by accounting gains rather than purely operational improvements, underscoring the need for the reforms Afenyo-Markin advocated.

Beyond financial mechanisms, Afenyo-Markin urged ECG to adopt modern technology to curb technical and commercial losses. He recommended the widespread introduction of smart meters and digital payment systems, alongside stricter procurement controls to manage costs. He concluded that the electricity sector must move toward a model of operational excellence that does not pass its inefficiencies onto Ghanaian consumers, stressing that true reform is the only path to creating a robust and accountable national institution.