NRGI Calls for Transparency-Led Energy Sector Reset

The Country Director of the Natural Resource Governance Institute (NRGI), Patrick Stephenson, has called for a transparency-led energy sector reset, warning that Ghana risks sliding back into a circular debt crisis if institutional safeguards are not urgently strengthened.

Speaking on the state of reforms in the power sector, Mr. Stephenson argued that while some progress has been made in stabilising cash flows, the deeper governance weaknesses that previously fuelled debt accumulation remain largely unresolved.

He cautioned that without embedding reforms within a durable transparency framework, short-term gains could quickly unravel.

Central to his proposal is immediate and comprehensive disclosure of all negotiated energy contracts. According to Mr. Stephenson, limited public access to contract details continues to undermine accountability and prevent meaningful scrutiny by civil society and citizens.

“Publishing all negotiated contracts within a defined 90-day period would be a critical first step to ensure transparency and prevent a return to the practices that brought us here” Patrick Stephenson, Country Director of the Natural Resource Governance Institute (NRGI).

He noted that many of the sector’s long-term financial challenges stem from clauses embedded in agreements that were not subjected to sufficient public examination. Without access to such documents, he argued, it becomes difficult to assess whether obligations are sustainable or in the public interest.

For Mr. Stephenson, transparency is not simply a governance ideal but a public interest imperative. Citizens, he stressed, have a right to know how public resources are committed across the energy value chain and what financial liabilities are being incurred on their behalf.

Beyond contract disclosure, Mr. Stephenson called for the introduction of clear performance metrics and enforceable key performance indicators for energy sector institutions, particularly the Electricity Company of Ghana (ECG).

He observed that previous failures in implementing the cash waterfall mechanism were largely attributable to weak accountability structures. Managers and boards, he argued, faced little to no consequences when established rules were ignored.

“We need proper KPIs with consequences attached. If management or board members do not comply, there must be sanctions. Without that, the system will always be vulnerable.”

The cash waterfall mechanism, designed to ensure transparent and predictable allocation of revenue among sector players, has recently shown signs of improvement. However, Mr. Stephenson warned that this progress is not the result of new technical solutions.

“Nothing magical is happening. Someone has decided to follow the rules. The challenge is how we design institutions so that it becomes difficult for anyone to abandon those rules in the future.”

In his view, reform must go beyond individual compliance and instead build systems that make rule-breaking structurally difficult.

Mr. Stephenson also highlighted the need for improved coordination between ECG, Independent Power Producers (IPPs) and other actors within the energy value chain.

He argued that poor coordination and discretionary spending in the past diverted critical resources away from meeting power generation obligations, contributing significantly to debt accumulation.

Stronger institutional alignment, he suggested, would reduce inefficiencies and ensure that revenue collected is prioritized toward essential obligations rather than non-core expenditures.

Such coordination, he maintained, is essential if Ghana is to avoid recreating the same financial imbalances that required repeated fiscal interventions from the Ministry of Finance.

While much of the reform conversation has focused on debt sustainability and investor confidence, Mr. Stephenson urged policymakers not to overlook the consumer dimension.

He emphasized that energy sector reforms must also address affordability, service quality and metering accuracy. Without attention to these factors, public support for reform efforts could weaken.

In particular, he questioned procurement practices surrounding metering contracts, stressing the need for transparency to ensure that meters are properly calibrated and capable of accurately measuring electricity consumption.

Concerns about billing accuracy and tariff fairness, he noted, directly affect public trust in the sector.

For Mr. Stephenson, ensuring that consumers receive reliable service at fair prices is integral to rebuilding confidence in Ghana’s energy institutions.

In concluding his remarks, Mr. Stephenson underscored that technical reforms alone will not guarantee long-term stability. Financial restructuring, revised payment mechanisms and cost controls, he said, must be embedded within a robust governance framework.

Without transparency, enforceable accountability measures and institutional safeguards, he warned, the sector could easily revert to patterns of inefficiency and debt accumulation.