Parliament passes revised Energy Commission Bill to include local content and participation in Ghana’s energy supply sector

Ghana’s Parliament has passed the Energy Commission (Amendment) Bill, 2016 into Law.
The Bill amends the Energy Commission Act, 1997 (Act 541), to incorporate provisions on local content and participation in the supply of energy in the country.
The amendment also empowers the Energy Commission to promote local content and participation in the energy sector, by establishing minimum local content and participation requirements for electricity supply, transmission, distribution, sale and allied services.
Details
The Energy Commission Act, 1997 (Act 541) provides for the regulation, management, development and utilisation of energy resources in the country under the aegis of the Energy Commission. However, the Act is silent on local content and participation, hence this amendment.
The revised Law empowers the Minister responsible for Power to make Regulations to provide for a comprehensive local content platform that will ensure a maximisation of the use of local financial capital, expertise, goods and services to create employment for Ghanaians and promote businesses.
The new Act also reduces the importation of equipment and services that can be obtained locally. This aims at supporting industries through the manufacture of electrical equipment and appliances and renewable energy technologies.
The Bill which has been passed defines local content to mean the percentage of utilisation of Ghanaian human material resources, services and businesses, in monetary terms, for the systematic development of national capacity and capabilities for the enhancement of the Ghanaian economy. It also defines local participation to mean the percentage of local equity ownership in a sector or industry.
The passed Bill was sponsored by the Minister for Finance, who doubles as the Minister responsible for Power, Seth Terkper.

Source: GhanaJustice/N. Cudjoe