The World Bank has warned that until the government puts the right regulatory and tariff framework in place to enable consumers of electricity to pay the right prices, the ongoing challenges will not end any time soon.
According to the bank, the government requires investment from the private sector to be able to fund the huge cost of infrastructure at the generation, transmission and distribution levels while being allowed to sell the power to consumers at the right prices.
Answering questions from financial journalists at a forum in Accra, Dr Waqar Haider, Sector Leader, Sustainable Development of the World Bank in charge of Ghana, Liberia and Sierra Leone, said “no private investor is interested in investing in any economy to make losses”.
He said the potential in electricity generation was great but without good regulatory and tariff regimes no one would be ready to invest in that sector.
For more than a year now, the Electricity Company of Ghana (ECG) has been compelled under strenuous circumstances to ration power in a manner that has affected a lot of businesses.