Regulatory and policy options to encourage development of ...
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MODULE 9: RENEWABLE ENERGY: REGULATORY AND POLICY OPTIONSpage 9.872. ENERGY REGULATION IN GHANA2.1. Institutional structure <strong>of</strong> the energy sec<strong>to</strong>rThe energy sec<strong>to</strong>r in Ghana is managed at different levels by the organizationsdetailed below. For simplicity, the various institutions are grouped under <strong>policy</strong>,regula<strong>to</strong>ry, operational <strong>and</strong> support institutions. Some <strong>of</strong> their roles overlap—forexample the roles <strong>of</strong> the Energy Commission <strong>and</strong> the Environmental ProtectionAgency in licensing petrol filling stations.Policy institutions The Ministry <strong>of</strong> Energy: As part <strong>of</strong> the executive arm <strong>of</strong> Government, theMinistry is the ultimate body responsible for <strong>development</strong> <strong>of</strong> energy <strong>policy</strong> forGhana. The ministry is responsible for developing <strong>and</strong> implementing energysec<strong>to</strong>r <strong>policy</strong> in Ghana, <strong>and</strong> also supervises the operations <strong>of</strong> the agenciesassociated with the sec<strong>to</strong>r.<strong>Regula<strong>to</strong>ry</strong> institutionsThese include: The Energy Commission (EC): An independent agency responsible for licensing,regulating <strong>and</strong> moni<strong>to</strong>ring private <strong>and</strong> public entities operating in theenergy sec<strong>to</strong>r. The commission also collects <strong>and</strong> analyses energy data <strong>and</strong>contributes <strong>to</strong> the <strong>development</strong> <strong>of</strong> energy <strong>policy</strong> for Ghana. EC was establishedin 1997 in accordance with the recommendations <strong>of</strong> the Power Sec<strong>to</strong>r ReformsCommission (PSRC). The Public Utilities <strong>Regula<strong>to</strong>ry</strong> Commission (PURC): An independent agency setup as recommended by the Power Sec<strong>to</strong>r Reforms Commission (PSRC) <strong>to</strong> overseethe performance <strong>of</strong> the public utilities. PURC is m<strong>and</strong>ated <strong>to</strong> protect theinterest <strong>of</strong> consumers <strong>and</strong> <strong>to</strong> examine <strong>and</strong> approve the rates chargeable bythe utilities. 2 Environmental Protection Agency (EPA): Responsible for establishing, moni<strong>to</strong>ring<strong>and</strong> enforcing environmental policies for the country. EPA has oversightresponsibility in any activity that is likely <strong>to</strong> have an environmental impact.EPA moni<strong>to</strong>rs the activities involved in the production <strong>and</strong> use <strong>of</strong> energy.2Public Utilities <strong>Regula<strong>to</strong>ry</strong> Commission Act, 1997 (Act 538).