The Rise and Fall of ECG
Content
University of Ghana Business School
THE RISE AND FALL OF ELECTRICITY COMPANY OF GHANA BY GIFTY APAW AGYEI
10551278
GEOR GEORGE GE JOE JOE ARTH ARTHUR UR 1055 105506 0669 69 DAVI DAVID D ADE ADEAB ABAH AH 1055 105511 1139 39 DERI DERICK CK MEN MENSAH SAH 1055 105509 0925 25 EMMANUEL UEL ARTH RTHUR
10551344
Lecturers: Dr. Dartey-Baah & Dr. Amponsah Tawiah
Course: Organizational Behaviour Management January, 2016
1.0
STRART UP
1.1
BRIEF HISTORY OF ECG
ECG was incorporated in 1963 and became a limited company when shares were first sold in the firm in February 1997. However the company is still owned by the government.
The enactment of the Electricity Corporation Decree, 1967 (NLCD 125) and the repeal of the Electricity Act, established the Electricity Corporation of Ghana (ECG). For the next two decades, ECG was to remain the entity solely responsible for electricity supply and the distribution networks nationwide. In 1987, the corporation’s sphere of operation was limited to
the southern parts of Ghana which also had the greater concentration of customers.
The first government-sponsored public electricity supply in the country commenced in 1914 at Sekondi. It was operated by the Railway Administration which extended supply to Takoradi in 1928. Meanwhile, the Public Works Department had commenced a limited Direct Current (DC) supply in Accra during 1922 and this was immediately followed by a larger Alternating Current (AC) project which commenced in 1924. A small plant consisting of three horizontal single cylinder oil-powered engines was installed in Koforidua in 1925. Also in 1926, work commenced
on
providing
power
to
Kumasi.
During the period 1929 to 1930, limited electricity supply was extended to Tamale until a new AC plant was installed in 1938. The next power station to be established was Cape Coast which came into being in 1932. Subsequent to its takeover by the Electricity Department from the Public Works and Railways on 1st April, 1947, a power station at Swedru was commissioned in
1948. This was followed by the installation of generating plants at Oda, Dunkwa and Bolgatanga in
1948.
The Tema power station was commissioned in 1956 with a 3 x 650 kW generating set. The Ho power station followed in 1957. From 1961-64, the Tema Station was extended to a maximum capacity of 35,298 kW, thus, making it the biggest single diesel-powered generating station in Africa.
1.2
MISSION AND GOALS OF ECG
The mission is to provide quality, reliable and safe electricity services to support the socioeconomic growth and development of Ghana.
2.0
GROWTH STAGE
The electricity sector in Ghana, generally, has witnessed significant growth for some time now. ECG merged from the start up stage as it succeeds in its initial goal of distributing electricity and secured a few customers. It then entered the commercialization stage where it had to receive electric power in larger quantities, reach wider customers in its bid to serve the social good. Leadership focus was on providing electricity services to support economic growth and development of Ghana. This saw the birth of the rural electrification programme and the expansion and up-grading of some urban electricity distribution networks which accounted for 12.02% growth in the electricity and water sector in 1992; according to the budget statement and economic policy for 1993. The organizational size needed to grow since its needed more resources for larger distribution and provision of electricity services. While a consistent growth in core functionality continued, additional growth occurred. The electricity company of Ghana then faced major challenges including the security of supply to keep up with ever-mounting demand, and the national trend toward massive urbanization.
The first challenge was to invest enough to keep up with the growing demand for electric power while keeping final costs under control. The continued reliance on hydropower and the natural rainfall pattern in Ghana to power the two dams then: Akosombo and Kpong; relatively plagued the whole economy during the 1983-84 and 1993-94 droughts, 2003-04 and in recent years 201314 through to 2015.
The second major challenge was massive urbanization, particularly in the major cities, where the trend is particularly visible in cities, even when they develop in a relatively disorganized fashion,
offer a better chance of escaping poverty than rural areas. Urban growth rates had reached unprecedented levels accounting for about two-thirds of electric power consumption today.
2.1
SPECIALIZED JOBS
The growth of ECG brought in more specialized jobs requiring the recruitment of specialists; it inadvertently created a leadership crisis at the top level since the changed, ECG demanded delegation of responsibility. The individual technical leads needed to part with some of their autonomous power. 2.2
ORGANIZATIONAL STRUCTURE
The organizational structure started to shift towards being more hierarchical. Management hierarchy was created and tasks were delegated to subordinates. Since the expansion was particularly about infrastructure development; the supporting staff was minimal; ECG adopted a functional structure.
Bibliography
Akorli, Simons (2005). Electricity Industry Policy Options for Small Economies: The Case of Ghana. A PhD dissertation Proposal. ABB (1995). Introduction to Integrated Resource T & D Planning, 3rd Printing, ABB Power T & D Company Inc., Cary. ABB (1950). Electrical Transmission and Distribution Reference Book, ABB Power Systems Inc., Pittsburgh. Armah, B. (2002). Economic Analysis of the Energy Sector, Institute of Economic Analysis (IEA). Ghana. ECG (2004). ECG Management Support Services Contract 2004. Accra. Ghana. Edjekumhene, Amadu, and Brew Hammond (2003). Power Sector Reform in Ghana in the 1990s: The Untold Story of A Divided Country Versus A Divided Bank. Energy Commission (2005), Strategic National Energy Plan 2005-2025 Energy Commission Act, 1997 (Act 541) Gonen, Turan (1988). Modern Power System Analysis, John Wiley & Sons Ltd, New York. Government of Ghana (1999). Statement of Power Sector Development Policy, April. Gross, Charles A., Power System Analysis, John Wiley & Sons Ltd, New York. IEE (2002). Renewable Energy in the UK, An Environment & Energy Fact File, 2nd Edition, Savoy Place. IEE (1979). IEE Introductory Booklet on The Power Station Game, Savoy Place.
ISSER (2003). State of the Ghanaian Economy in 2003. Institute for Statistical, Social and Economic Research, University of Ghana, Legon James Moxon (1984). Volta Man’s Greatest Lake. Pitman Press, Bath.
Public Utilities Regulatory Act, 1997 (Act 538). Volta River Authority (2001). VRA Generation and Transmission System Master Plan, Acres International, July. Volta River Authority (1985). Ghana Generation Planning Study, Acres International Limited. Volta River Authority (1971). Ghana Power Study, Engineering and Economic Evaluations of Alternative Means of Meeting VRA Electricity Demands to 1985, Kaiser Engineers, August. Weedy, B.M. (1987). Electric Power Systems, 3rd Edition Revised, John Wiley & Sons Ltd, Chichester. World Book (1994). The World Book Encyclopedia, Volume 6, World Book Inc., London.
THE RISE AND FALL OF ELECTRICITY COMPANY OF GHANA BY GIFTY APAW AGYEI
10551278
GEOR GEORGE GE JOE JOE ARTH ARTHUR UR 1055 105506 0669 69 DAVI DAVID D ADE ADEAB ABAH AH 1055 105511 1139 39 DERI DERICK CK MEN MENSAH SAH 1055 105509 0925 25 EMMANUEL UEL ARTH RTHUR
10551344
Lecturers: Dr. Dartey-Baah & Dr. Amponsah Tawiah
Course: Organizational Behaviour Management January, 2016
1.0
STRART UP
1.1
BRIEF HISTORY OF ECG
ECG was incorporated in 1963 and became a limited company when shares were first sold in the firm in February 1997. However the company is still owned by the government.
The enactment of the Electricity Corporation Decree, 1967 (NLCD 125) and the repeal of the Electricity Act, established the Electricity Corporation of Ghana (ECG). For the next two decades, ECG was to remain the entity solely responsible for electricity supply and the distribution networks nationwide. In 1987, the corporation’s sphere of operation was limited to
the southern parts of Ghana which also had the greater concentration of customers.
The first government-sponsored public electricity supply in the country commenced in 1914 at Sekondi. It was operated by the Railway Administration which extended supply to Takoradi in 1928. Meanwhile, the Public Works Department had commenced a limited Direct Current (DC) supply in Accra during 1922 and this was immediately followed by a larger Alternating Current (AC) project which commenced in 1924. A small plant consisting of three horizontal single cylinder oil-powered engines was installed in Koforidua in 1925. Also in 1926, work commenced
on
providing
power
to
Kumasi.
During the period 1929 to 1930, limited electricity supply was extended to Tamale until a new AC plant was installed in 1938. The next power station to be established was Cape Coast which came into being in 1932. Subsequent to its takeover by the Electricity Department from the Public Works and Railways on 1st April, 1947, a power station at Swedru was commissioned in
1948. This was followed by the installation of generating plants at Oda, Dunkwa and Bolgatanga in
1948.
The Tema power station was commissioned in 1956 with a 3 x 650 kW generating set. The Ho power station followed in 1957. From 1961-64, the Tema Station was extended to a maximum capacity of 35,298 kW, thus, making it the biggest single diesel-powered generating station in Africa.
1.2
MISSION AND GOALS OF ECG
The mission is to provide quality, reliable and safe electricity services to support the socioeconomic growth and development of Ghana.
2.0
GROWTH STAGE
The electricity sector in Ghana, generally, has witnessed significant growth for some time now. ECG merged from the start up stage as it succeeds in its initial goal of distributing electricity and secured a few customers. It then entered the commercialization stage where it had to receive electric power in larger quantities, reach wider customers in its bid to serve the social good. Leadership focus was on providing electricity services to support economic growth and development of Ghana. This saw the birth of the rural electrification programme and the expansion and up-grading of some urban electricity distribution networks which accounted for 12.02% growth in the electricity and water sector in 1992; according to the budget statement and economic policy for 1993. The organizational size needed to grow since its needed more resources for larger distribution and provision of electricity services. While a consistent growth in core functionality continued, additional growth occurred. The electricity company of Ghana then faced major challenges including the security of supply to keep up with ever-mounting demand, and the national trend toward massive urbanization.
The first challenge was to invest enough to keep up with the growing demand for electric power while keeping final costs under control. The continued reliance on hydropower and the natural rainfall pattern in Ghana to power the two dams then: Akosombo and Kpong; relatively plagued the whole economy during the 1983-84 and 1993-94 droughts, 2003-04 and in recent years 201314 through to 2015.
The second major challenge was massive urbanization, particularly in the major cities, where the trend is particularly visible in cities, even when they develop in a relatively disorganized fashion,
offer a better chance of escaping poverty than rural areas. Urban growth rates had reached unprecedented levels accounting for about two-thirds of electric power consumption today.
2.1
SPECIALIZED JOBS
The growth of ECG brought in more specialized jobs requiring the recruitment of specialists; it inadvertently created a leadership crisis at the top level since the changed, ECG demanded delegation of responsibility. The individual technical leads needed to part with some of their autonomous power. 2.2
ORGANIZATIONAL STRUCTURE
The organizational structure started to shift towards being more hierarchical. Management hierarchy was created and tasks were delegated to subordinates. Since the expansion was particularly about infrastructure development; the supporting staff was minimal; ECG adopted a functional structure.
Bibliography
Akorli, Simons (2005). Electricity Industry Policy Options for Small Economies: The Case of Ghana. A PhD dissertation Proposal. ABB (1995). Introduction to Integrated Resource T & D Planning, 3rd Printing, ABB Power T & D Company Inc., Cary. ABB (1950). Electrical Transmission and Distribution Reference Book, ABB Power Systems Inc., Pittsburgh. Armah, B. (2002). Economic Analysis of the Energy Sector, Institute of Economic Analysis (IEA). Ghana. ECG (2004). ECG Management Support Services Contract 2004. Accra. Ghana. Edjekumhene, Amadu, and Brew Hammond (2003). Power Sector Reform in Ghana in the 1990s: The Untold Story of A Divided Country Versus A Divided Bank. Energy Commission (2005), Strategic National Energy Plan 2005-2025 Energy Commission Act, 1997 (Act 541) Gonen, Turan (1988). Modern Power System Analysis, John Wiley & Sons Ltd, New York. Government of Ghana (1999). Statement of Power Sector Development Policy, April. Gross, Charles A., Power System Analysis, John Wiley & Sons Ltd, New York. IEE (2002). Renewable Energy in the UK, An Environment & Energy Fact File, 2nd Edition, Savoy Place. IEE (1979). IEE Introductory Booklet on The Power Station Game, Savoy Place.
ISSER (2003). State of the Ghanaian Economy in 2003. Institute for Statistical, Social and Economic Research, University of Ghana, Legon James Moxon (1984). Volta Man’s Greatest Lake. Pitman Press, Bath.
Public Utilities Regulatory Act, 1997 (Act 538). Volta River Authority (2001). VRA Generation and Transmission System Master Plan, Acres International, July. Volta River Authority (1985). Ghana Generation Planning Study, Acres International Limited. Volta River Authority (1971). Ghana Power Study, Engineering and Economic Evaluations of Alternative Means of Meeting VRA Electricity Demands to 1985, Kaiser Engineers, August. Weedy, B.M. (1987). Electric Power Systems, 3rd Edition Revised, John Wiley & Sons Ltd, Chichester. World Book (1994). The World Book Encyclopedia, Volume 6, World Book Inc., London.
