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Ghana’s electricity distribution to be regulated

The country aims to have the regulations in place by 2021.


By 2021, Ghana will have market rules in place to regulate the distribution of electricity, which will be facilitated and supported by Ghana Grid Company (GRIDCo) and the Electricity Market Oversight Panel (EMOP), respectively.

The Ghanaian Times reports that the regulation will be facilitated by the EMOP, which has an 11-member panel created by the Electricity Regulations, 2008 (L.I. 1937). Its aim is to supervise the operation and administration of the Ghana Wholesale Electricity Market (GWEM) and advise the Energy Commission on the operation and administration of the GWEM.

EMOP Administrator-Economist, Mr. Eric Kyem, said the rules would specify the guidelines in the electricity market and outline sanctions for operators who act against laid-down procedures in the market.

He added that the rules were necessary to standardize the electricity market sector and help build a more robust and sustainable electricity market.

Mr. Kyem said: “The rules would govern wholesale market procedures, including invoicing, payments, adjustment of payments with interest for late or over payments, and monetary penalties.”

Further, it would also regulate the market manual, including procedures for settling complaints and disputes.

The rules will also help in the monitoring of the performance of electricity in the country when it comes to market administration functions and ensure smooth operations of the wholesale electricity market.

“The rules are necessary following the development of the electricity market structure, which consists of spot market and bilateral contracts,” added Mr. Kyem.

According to Mr. Kyem the main objective for the rules is to create competition in the electricity market sector to drive efficiency in production and reduce the cost of electricity.