The Minority in Parliament is calling for a thorough audit of the Energy Sector to assess its level of indebtedness.
They report that the sector’s debt has exceeded $2 billion due to the government’s mismanagement of funds from the Energy Sector Levy Act (ESLA).
Furthermore, they highlight that the Ministry of Finance has not paid approximately 1.8 billion Ghana cedis for power consumed by Ministries, Departments, and Agencies since August 2023, which is severely impacting the sector.
During a media briefing, John Jinapor, the Ranking Member of the Energy Committee, stated that the Akufo-Addo administration is poised to hand over a severely weakened Energy Sector to a government led by John Mahama.
“PURC based on its statement, has indicated that ECG is not abiding with the Cash Waterfall Mechanism and it is the mechanism that allows companies and entities throughout the energy sector value chain to get some revenue or payment, that has been jettisoned. As if that is not enough, the Ministry of Finance, since August 2023 has not paid up even a Cedi for power consumed by ministries, departments and agencies.
“From our rough estimates, that debt alone amounts to GH¢1.8 billion. Clearly, they are passing the dock just trying to manage the system and handing over dilapidated, ageing equipment, collapsed energy sector to President Mahama when he assumes office.
“A lot of work awaits President Mahama when he assumes office. The energy sector debt alone based on our rough estimate is around $2 billion as we speak.
They are misplaying the energy sector levy revenues, they are also misapplying the energy sector recovery levies. So, clearly, there is a major problem confronting us.
“We therefore call for a full audit of the entire energy sector. So that we will have a fair and firm appreciation of this state of indebtedness so that whoever assumes office will prepare to tackle the challenges.
“This is an attempt to sweep all the challenges under the carpet and hope that they can just cross over the next election and that is not the way to go,” he stated.
The Minority also stated that a future NDC government will cancel the proposed merger of the Volta River Authority (VRA), the Bui Power Authority, the Electricity Company of Ghana (ECG), and the Northern Electricity Distribution Company (NEDCo).
