Finance Minister Cassiel Ato Forson has reaffirmed the government’s commitment to improving the efficiency of the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo) through the implementation of a Private Sector Participation (PSP) strategy to enhance revenue collection.
Presenting the 2025 Budget to Parliament on Tuesday, March 11, Dr. Forson announced that the energy sector will adopt a Liquid Fuel-to-Gas Swap, increasing the supply of N-Gas from 60 million standard cubic feet per day (mmscfd) to 100 mmscfd.
This initiative aims to capitalize on lower gas prices, ultimately reducing costs in the energy sector.
Additionally, he noted that the Mahama-led administration is committed to finalizing negotiations on Independent Power Producer (IPP) capacity agreements as part of broader efforts to address challenges within the sector.
This process aims to generate cost savings by securing reduced fixed capacity charges and lower variable operations and maintenance (O&M) expenses.
“Mr. Speaker, to address the energy sector challenges, including reducing the quantum of the large energy sector shortfalls, the following energy sector recovery programme interventions will be implemented.
“ECG and NEDCo will implement a number of measures including metering and the implementation of a Private Sector Participation (PSP) strategy to improve collection efficiency; implement the Liquid Fuel-to-Gas Swap through an increase in N-Gas supply from the 60 mmsc per day to 100 mmsc to take advantage of cheaper gas prices; and complete the IPP capacity renegotiations to generate some savings through negotiated lower fixed capacity charges and variable O&M charges.” he stated.
