GRIDCo, EMOP plan to regulate distribution of electricity

Participants at the meeting

Participants at the meeting

Ghana will by 2021 have an electricity market rules in place to regulate wholesale distribution of electricity.

It is being facilitated by the Ghana Grid Company Limited (GRIDCo) with support from the Electricity Market Oversight Panel (EMOP).

EMOP is an 11- member panel created by the Electricity Regulations, 2008 (L.I. 1937), to supervise the operation and administration of the Ghana Wholesale Electricity Market (GWEM) and advice the Energy Commission on the operation and administration of the GWEM.

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

At an EMOP stakeholder engagement in Accra, he said the rules were necessary to sanitise the electricity market sector and help in building a more robust and sustainable electricity market.

Participants at the meeting included representatives from the Energy Commission, Electricity Company of Ghana (ECG), GRIDCo, Volta River Authority and Independent Power Producers among others.

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

It would also regulate the market manual and procedures for settling complaints and disputes among market participants, he added.

Mr Kyem said the rules would help in monitoring the general performance of the electricity market administration functions of the utility and ensure the smooth operation of the wholesale electricity market.

The rules, he said were necessary following the development of the electricity market structure which consists of the spot market and bilateral contracts.

He said the main objective of the rules was to promote competition in the electricity market sector which would drive efficiency in production to reduce cost and ultimately result in low cost of electricity for consumers.

Executive Secretary of the Energy Commission, Dr Alfred K. Ofosu Ahenkorah said the EMOP was key in the creation of both a local and export market for electricity, adding that the Commission would continue to promote energy mix to drive down electricity cost.

By Claude Nyarko Adams

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