Amid the conversations surrounding the proposed merger of Ghana’s two key electricity regulatory institutions, the Public Utility Regulatory Commission (PURC) and the Energy Commission, a former Minister of Power and former Chairman of Parliament’s Select Committee on Mines and Energy, Dr. Kwabena Donkor, has made a strong case for the move.
Dr. Donkor argues that regulatory duplication is undermining efficiency and costing both consumers and industry, hence the need for a merger.
In an exclusive interview with The High Street Journal, the former minister described the current regulatory structure as fragmented and economically inefficient.
For him, a unified regulator would deliver better planning, faster decision-making, and stronger sector governance.
The Case for One Regulator
Currently, PURC serves as the economic regulator, responsible for tariffs and consumer protection, while the Energy Commission functions as the technical regulator and also handles long-term planning for the power sector.
But the former minister questions the logic of separating these roles. “How do you plan long-term without the economic angle?” he asked, suggesting that technical planning divorced from tariff realities creates structural inconsistencies.
In several jurisdictions, he noted, one regulatory body oversees economic regulation, technical standards, and governance under a single institutional framework. That integrated model, he argues, promotes coherence and accountability.
Under the new proposal, the electricity as part of PURC will be merged with the Energy Commission, while the water aspect will be merged with the Water Resources Commission.
The Efficiency Argument
The former minister pointed to duplication of functions as a major concern. Both institutions maintain separate accounting departments, legal departments, corporate affairs units, and administrative structures
This, he argues, creates parallel bureaucracies funded by the same public purse.
“There’s a whole accounting department at the Energy Commission. There’s an accounting department at PURC. There is a corporate affairs department in PURC. There is a legal. So the states, including consumers, are not getting the best efficiency because of the duality,” he explained.
By merging the institutions under one leadership and a unified mandate, the sector would benefit from economies of scale, reduced overhead costs, and a clearer chain of responsibility.
How the Merger Would Work
He, however, noted that the proposed merger would require legislative action to create a new regulatory mandate. The idea is not to eliminate technical and economic oversight, but to consolidate them within one institutional structure.
Under the proposal, the new regulator would have distinct divisions for economic regulation, technical regulation, and governance.
It would operate under one corporate culture and unified leadership. It would serve as a one-stop shop for licensing, tariff approvals, and consumer complaints.
Dr. Donkor explains that if a company needs a licence, a tariff adjustment, or a regulatory clearance, it would deal with only one authority rather than navigating multiple agencies.
“If we brought these two institutions together under one leadership, under one common objective, we would have a more focused electricity regulatory regime,” he noted.
Benefits for Consumers and Industry
Dr. Donkor further explained that, if successfully implemented, the merger could yield several tangible benefits:
1. Faster Decision-Making
Developers and investors would no longer face delays caused by inter-agency coordination.
2. Lower Administrative Costs
Consolidating departments could reduce operational expenses and improve public sector efficiency.
3. Improved Long-Term Planning
Economic, technical, and governance considerations would be aligned within a single framework.
4. Clearer Accountability
With one regulator, responsibility would be centralized, reducing blame-shifting between institutions.
5. Stronger Investor Confidence
A cohesive regulatory regime could enhance predictability and reduce bureaucratic hurdles.
The Bottomline
Ghana’s power sector continues to face challenges ranging from cost recovery and tariff sustainability to long-term capacity planning.
The former minister believes structural reform of the regulatory framework is a necessary step toward resolving these issues.
Whether the merger proceeds will depend on political will and legislative action. But the proposal has reopened an important debate about how Ghana structures its regulators, and whether institutional consolidation could unlock greater efficiency for both consumers and industry.
