Ghana’s planned transition of the Electricity Company of Ghana (ECG) to private management could leave consumers paying for existing inefficiencies unless key regulatory weaknesses are addressed, policy think tank IMANI Africa has warned.
The think tank said the Public Utilities Regulatory Commission’s (PURC) 21.5% technical and commercial loss benchmark used in electricity tariff calculations remains a major concern that must be reviewed before the planned ECG privatisation process in 2027.
In a policy brief, IMANI argued that the benchmark reflects a deeper challenge within Ghana’s power sector, a gap between what utilities know about their operations and what the regulator can independently verify.
The group described this as an “information asymmetry”, arguing that PURC has limited access to independent, real-time data on grid performance and therefore relies heavily on information provided by utilities it regulates.
According to IMANI, this weakens the regulator’s ability to determine whether reported losses are the result of unavoidable technical challenges or operational inefficiencies.
The think tank said Ghana’s tariff system currently allows a 21.5% loss level to be considered when setting electricity prices, meaning some of the cost associated with power losses is reflected in consumer bills.
IMANI compared the benchmark with efficient electricity systems globally, where grid losses are typically lower, and argued that Ghana’s higher allowance risks making consumers bear the cost of inefficiencies within the power distribution system.
“By embedding a 21.5% loss tolerance into the tariff structure,” IMANI said, the system risks forcing ordinary Ghanaians to “underwrite systemic waste.”
The group warned that moving ECG into private management without fixing the regulatory gap could create a situation where a private operator inherits a system where inefficiencies are already accommodated within the tariff framework.
IMANI argued that if the same regulatory structure remains in place, a private operator may have limited incentive to aggressively reduce losses because those costs could continue to be recovered through electricity tariffs.
The think tank said the focus of reform should therefore not only be on changing ECG’s management structure but also on strengthening PURC’s ability to independently monitor the sector.
It called for the regulator to develop independent data systems, including real-time monitoring tools, to verify electricity losses, outages and operational performance instead of depending largely on reports from utilities.
The government has said private sector participation in ECG forms part of broader efforts to improve efficiency, reduce losses and strengthen electricity service delivery.
However, IMANI said the success of the transition will depend on whether the regulatory system is strong enough to hold operators accountable and ensure consumers are protected.
