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Genser deal to cannibalise all state enterprises in energy sector – Ben Boakye - www.asempanews.com

Genser deal to cannibalise all state enterprises in energy sector – Ben Boakye - www.asempanews.com

The Executive Director of the Africa Centre for Energy Policy, Ben Boakye, says government is propping up Genser to kill state energy companies.

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This 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.

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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.

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

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He explained that the 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.

So what we are doing and the manner in which we are propping Genser, we don’t fight the entry of the private sector if they can make genuine efforts to take up market without being supported by the state against other entities or other players in the market.

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

Original Story on: AsempaNews
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