President John Mahama says the NDC government remains resolute in its commitment to restore stability in the energy sector despite the numerous financial challenges facing the sector.
President John Mahama in his State of the Nation address (SONA) on Thursday, February 27 said despite collecting over GH¢ 45 billion in Energy Sector Levies (ESLA) over the last eight years, the NPP administration left a debt of GH¢70 billion in the energy sector as of December, 2024.
According to the President, Financial distress in the energy sector remains a significant obstacle to delivering consistent and affordable electricity to Ghanaians and poses an existential threat to the economy in general.
“While the current state of the energy sector poses grave concerns, we must remain resolute in our commitment to restoring stability. I have directed the Minister for Energy and Green Transitions to implement far-reaching reforms, including enforcing a single revenue collection account, strictly adhering to the Cash Waterfall Mechanism (CWM), and eliminating wasteful expenditures,” he said.
He also mentioned that several state-owned enterprises (SOEs) in the energy sector were struggling to stay afloat unless urgent interventions are made.
That, he said, has also led to many Independent Power Producers (IPPs) and fuel suppliers threatening to cease their operations.
President Mahama, therefore, indicated that the NDC government has swiftly mobilised resources to secure emergency fuel supplies, ensuring that electricity generation continues despite the difficult circumstances.
“The Minister, following my directive has set up an advisory committee to guide the participation of the private sector in metering and billing in order to improve efficiency in revenue collection and reduce the high commercial and technical losses that are threatening to drown the state-owned utility company,” he noted.
By Ebenezer K. Amponsah