Ghana’s Minority in Parliament is sounding the alarm on the country’s energy sector, calling for a thorough audit to assess the extent of its debt, which they claim has ballooned to over $2 billion.
According to John Jinapor, Ranking Member on Parliament’s Energy Committee, the government’s mismanagement of funds collected under the Energy Sector Levy Act (ESLA) is largely to blame for this staggering debt.
The Ministry of Finance’s failure to pay GH¢1.8 billion worth of power consumed by Ministries, Departments, and Agencies (MDAs) since August 2023 has severely impacted the power sector.
Jinapor accuses President Nana Addo Dankwa Akufo-Addo’s administration of intentionally leaving a collapsed energy sector for John Dramani Mahama’s future government.
Jinapor pointed out that the Public Utilities Regulatory Commission (PURC) has stated that the Electricity Company of Ghana (ECG) is not adhering to the Cash Waterfall Mechanism, which ensures revenue distribution throughout the energy sector value chain.
This, combined with the Ministry of Finance’s unpaid debts, has brought the energy sector to its knees.
The Minority in Parliament is concerned that the government is misusing energy sector levy revenues and recovery levies, further exacerbating the crisis.
With Ghana’s energy sector debt estimated to be around $2 billion, Jinapor warns that President Mahama will face significant challenges when he assumes office.
The call for an audit is a critical step towards addressing these issues and ensuring the long-term sustainability of Ghana’s energy sector.
It remains to be seen how the government will respond to these concerns and what measures will be taken to mitigate the debt and revitalize the sector.
