Cross-representation in energy sector boards key to governance reforms – ASEC
The Africa Sustainable Energy Centre (ASEC) has called for increased cross-representation on the boards of key entities within Ghana’s energy sector to enhance governance, transparency, and operational efficiency.
The think tank believes that a diversified board composition will lead to better decision-making processes and sector-wide improvements.
ASEC emphasises that incorporating representatives from organisations such as the Ghana Grid Company (GRIDCo) and the Volta River Authority (VRA) into the Electricity Company of Ghana (ECG) board would improve electricity distribution decisions. By doing so, planning would consider transmission constraints and generation capacities, leading to more informed and effective governance structures.
“Cross-representation on their boards allows for diverse perspectives, technical expertise, and firsthand insights into sector-wide challenges, improving governance and operational effectiveness,” Karikari Kwagyan Achireko, Director of Corporate Strategy at ASEC, explained.
With ongoing discussions about privatizing ECG, ASEC also highlighted the need for the government to prioritize expertise from within the company.
The think tank noted that past managing directors and senior executives, with decades of experience, could provide invaluable insights into operational, regulatory, and financial matters.
ASEC also advocates for governance reforms to improve the cash waterfall mechanism, which ensures equitable revenue distribution across the energy sector.
The organisation argues that board-level cross-representation would enhance transparency and coordination, reducing payment disputes and delays.
“The presence of GRIDCo and VRA representatives on the ECG board helps ensure that payments to transmission and generation entities are prioritized, reducing arrears and enhancing liquidity across the value chain,” noted Karikari Kwagyan Achireko.
For further transparency, ASEC suggests including consumer advocacy groups on the ECG board to enhance accountability regarding service quality and affordability.
Another key recommendation from ASEC is the alignment of infrastructure investments with national energy goals. The think tank warns that misallocation of resources can create operational bottlenecks and financial inefficiencies.
“When the Electricity Company of Ghana plans a network expansion to improve service reliability, representatives from GRIDCo and the VRA on its board can help ensure that these upgrades are compatible with existing generation and transmission capacities. Without such coordination, expansion projects risk financial losses and disruptions to service delivery,” Mr. Achireko added.
ASEC further argues that cross-representation can enhance accountability by ensuring that financial and operational issues are addressed promptly.
“For example, if ECG delays payments to GRIDCo, the presence of grid company representatives on its board ensures that issues are addressed promptly. Similarly, independent power producers with board representation can advocate for fair contractual terms and the timely settlement of payments, reinforcing trust and stability in the sector,” the think tank explained.
ASEC also highlights the role of private sector stakeholders in energy sector governance, suggesting that their inclusion can introduce innovative financing models and efficiency improvements.
“Independent power producers can contribute to strategies for integrating renewable energy into the national grid, supporting Ghana’s long-term energy transition objectives,” ASEC stated, adding that such governance reforms would encourage investment in sustainable infrastructure solutions.
ASEC asserts that cross-representation in Ghana’s energy sector is not just an improvement but a necessity for achieving transparency, accountability, and efficiency.
By involving all key stakeholders, the sector can strengthen financial mechanisms, improve infrastructure coordination, and build trust among entities.
Furthermore, as discussions about the privatisation of ECG continue, ASEC underscores the importance of leveraging the expertise of seasoned professionals within the company. Their knowledge of sector challenges makes them best suited to guide decision-making and policy implementation.
“A governance framework that fosters cross-representation ensures that policymakers, investors, and consumers alike benefit from a stable and transparent energy sector that supports national development goals,” ASEC concluded.