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Genser deal: We’re developing a Trojan horse to cannibalise all state enterprises in the energy sector – Ben Boakye

  • SOURCE: myjoyonline | qwesa2big
    • POSTED ON: October 3, 2022

    The Executive Director of the Africa Centre for Energy
    Policy, Ben Boakye, alleges that Government of Ghana is propping up Genser to collapse
    state energy companies.

    Mr. Boakye made this assertion on the JoyNews’ Newsfile
    platform on Saturday October 1, 2022. He asserts that “Genser is into a
    competitive market where they are selling power to mines just as VRA is
    generating and selling to everybody else including the mines. As we speak
    today, VRA has lost 40MW of the market to Genser because they can’t compete.
    ECG has also lost 20MW of the market because they can’t compete.”

    His comment comes after IMANI Africa and the Africa Center
    for Energy Policy (ACEP) alleged that Ghana buys gas for 95.8 million dollars
    and sells to Genser for 43.5 million dollars accounting for a $1.5 billion
    financial loss to the state.

    According to Ben Boakye, the underpricing of gas sold to
    Genser by the government has given the energy company an undue advantage over
    state energy companies which continue to buy gas at market price.

    He noted that as a result, Genser has managed to capture
    about 60MW of the energy market from state energy companies.

    He further explained that government subsidizing the price
    of gas sold to Genser will enable the energy company capture a large portion of
    the energy market; eventually crippling the state energy company.

    He noted that should the calls for a review of the energy
    deal with Genser fall on deaf ears, Ghana stands to lose billions in revenue.

    Touching on expansion, Mr. Boakye added that as Genser
    expands their operations across the country, state energy enterprises will have
    little fighting chance to survive.

    “And gradually they’re building to Kumasi, they intend to
    build a pipeline all the way to the Eastern Region, Kyebi area to also supply
    the mines over there and it’s the state that is supplying all these subsidies

    “So, if you look at all that is happening in the space it
    appears to me that we’re actually developing a Trojan horse to cannibalise all
    the state enterprises in the energy sector in the long run and that shouldn’t
    be patronized by independents like us who are also interested in how the state
    agencies function even with all of their difficulties.

    “We have a responsibility to ensure that we do not add on to
    the pressures that they’re facing by just doing some of these transactions,” he

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