The Minority in Parliament has once again sounded the alarm over the shaky financial footing of the power sector, revealing that the government owes over $700 million to Independent Power Producers (IPPs) and fuel suppliers.
On Tuesday, April 28, Deputy Ranking Member of Parliament’s Energy Committee, Collins Adomako Mensah, emphasized that the sector’s problems go beyond technical issues and are fundamentally tied to financial woes.
“We also know that the problems of the sector are not only technical; they are financial,” he stated.
Despite assurances from Finance Minister Cassiel Ato Forson that debts to IPPs had been cleared, data available to the Minority tell a different story—one of substantial unpaid debts.
“The data available to us shows the government owes IPPs over $500 million and more than $200 million to fuel supply companies,” he disclosed.
These figures cast doubt on earlier claims of improved financial health within the Electricity Company of Ghana (ECG) and the broader energy sector. In light of this, the Minority has called on the government to clarify the true financial state of the sector, especially after the introduction of the so-called ‘Dumsor levy’—the Energy Sector Levy.
“We are demanding that the Minister for Energy and the Minister for Finance quickly present to Parliament and publish a comprehensive, independent report on the one Ghana cedi Dumsor levy,” he urged.
This report he added should detail all collections, disbursements, and the outcomes of every expenditure so far.”
