Privatizing the last Point of Electricity Distribution, by Bringing in Private Sector Efficiency: Is it the Solution to Ghana’s Electricity Crisis?

Abstract

T his study seeks to examine whether privatizing the last point of electricity distribution, bringing in private sector efficiency, is the solution to the electricity crisis in Ghana. The research will adopt a descriptive correlational research design. This design is ideal for examining the relationship between the privatization of the last point of electricity distribution and the improvement in service delivery, efficiency, and cost-effectiveness. A stratified random sampling technique was employed to select participants from different groups (residential, commercial, and industrial users) to ensure diverse representation in the study. The data analysis will involve both descriptive and inferential statistical techniques. Descriptive statistics were used to summarize responses from the survey (e.g., frequencies, percentages, mean scores). Inferential statistics, specifically correlation analysis and regression analysis, were employed to examine the relationships between privatization and key performance indicators, such as service reliability, cost-effectiveness, and customer satisfaction. The descriptive statistics reveal a generally positive outlook among the survey respondents toward privatization, with trust in the private sector, improved service quality, and support for privatization being significant indicators. The findings from the correlation and regression analyses suggest that privatization has a strong positive impact on service reliability and cost-effectiveness, while its effect on customer satisfaction is more moderate. These results are consistent with the general findings in the literature, which indicate that privatization can improve operational efficiency and reduce costs but may require additional efforts to fully satisfy customers. The study contributes to the ongoing debate on whether privatization is the solution to Ghana’s electricity crisis and supports the idea that private sector efficiency could indeed play a key role in enhancing performance in the sector.