The Minority in Parliament has expressed new concerns regarding the financial stability of the power sector, disclosing that the government owes over $700 million to Independent Power Producers (IPPs) and fuel suppliers.
During a press conference on Tuesday, April 28, Collins Adomako Mensah, the Deputy Ranking Member of Parliament’s Energy Committee, stated that the issues plaguing the sector go beyond mere technical limitations and are fundamentally tied to financial challenges.
“We are aware that the sector’s issues are not solely technical; they are also financial,” he remarked.
He pointed out that despite assurances from the Minister for Finance, Cassiel Ato Forson, that debts owed to IPPs had been settled, the data accessible to the Minority indicates otherwise, revealing significant outstanding payments.
“The information at our disposal shows that the government owes IPPs more than $500 million and over $200 million to companies that provided fuel for power generation,” he revealed.
These figures, the Minority contended, contradict previous government assertions of enhanced financial performance within the Electricity Company of Ghana (ECG) and the broader energy sector.
In light of this, he urged the government to clarify the actual financial status of the sector, especially after the implementation of the Energy Sector Levy, commonly known as the ‘Dumsor levy’.
“We are urging the Minister for Energy and the Minister for Finance to, as soon as possible, present to Parliament and publish a comprehensive, detailed, and independently verified report on the one Ghana cedi Dumsor levy, which should include all collections made to date, all disbursements, and the results of every expenditure,” he asserted.
