The minority in Parliament has revealed that the current government owes more than $700 million to independent power producers (IPPs) and fuel suppliers.
Addressing the press on Tuesday, April 28, Deputy Ranking Member on Parliament’s Energy Committee Collins Adomako Mensah said that the challenges facing the sector go beyond technical constraints and stem from deep financial difficulties.
“We also know that the problems of the sector are not only technical; they are financial. The data available to us is that the government owes IPPs over $500 million and over $200 million to companies that supplied fuel for power generation. These figures contradict earlier government claims of improved financial performance within the Electricity Company of Ghana and the wider energy sector.”
He further called on the government to provide clarity on the true financial position of the sector, particularly following the introduction of the energy sector levy, widely referred to as the ‘Dumsor levy’.
