President John Dramani Mahama has revealed that the Akufo-Addo-led administration left a staggering debt of 70 billion cedis within the power sector regardless of accumulating substantial revenues from the Vitality Sector Restoration Levy (ESLA).
Talking throughout the 2025 State of the Nation Deal with, Mahama highlighted the dire state of the power sector inherited by his administration and the pressing want for reforms to stabilise the sector and safeguard Ghana’s economic system.
Vitality sector on the point of collapse
President Mahama painted a grim image of the power sector, describing it as being on the snapping point attributable to unsustainable debt.
He emphasised that the monetary burden has led to unbiased energy producers and gasoline suppliers threatening to halt operations, which might exacerbate the already precarious scenario.
Mr. Speaker, my administration inherited an power sector on the point of collapse. It was weighed down by unsustainable debt.
This unlucky scenario has led to many unbiased energy producers and gasoline suppliers threatening to stop their operations.
70 Billion cedis regardless of 45 billion cedis in Vitality Levies
Mahama disclosed that regardless of the earlier administration accumulating over 45 billion cedis via the Vitality Sector Restoration Levy over the previous eight years, the sector was left with a debt of 70 billion cedis as of December 2024.
This revelation has raised severe issues in regards to the administration of funds and the monetary well being of state-owned enterprises within the power sector.
Regardless of accumulating over 45 billion cedis in power sector levies during the last eight years, the outgone administration has left the Ghanaian individuals with an power sector burdened with a staggering debt of 70 billion cedis as of December 2024,
State-owned enterprises struggling to outlive
The president expressed deep concern over the monetary misery confronted by state-owned enterprises within the power sector.
He warned that with out pressing intervention, many of those entities risked collapse, which might have far-reaching penalties for the economic system and the supply of reasonably priced electrical energy to Ghanaians.
It’s of deep concern that a number of state-owned enterprises within the power sector are struggling to remain afloat.
Until pressing interventions are made, lots of them will go underneath
Mahama cautioned.
Monetary misery within the power sector stays a major impediment to delivering constant and reasonably priced electrical energy to Ghanaians and poses an existential menace to our economic system normally.
Postponed upkeep actions and emergency measures
Mahama additionally highlighted the postponement of important upkeep actions, such because the pigging of the West African Gasoline Pipeline (WAGP), from 2024 to 2025.
This delay, coupled with inadequate contingency measures for various gasoline provide, compelled his administration to mobilise emergency assets to safe gasoline provides and guarantee uninterrupted electrical energy era.
Compounding these challenges, important upkeep actions such because the scheduled pigging of the West African Gasoline Pipeline have been postponed from 2024 to 2025 with out ample contingency measures for various gasoline provide
Mahama defined.
Because of this, my administration has needed to swiftly mobilise assets to safe emergency gasoline provides to make sure that electrical energy era continues regardless of the closure of the West African Gasoline Pipeline.
He added that the pigging train is predicted to be accomplished by the primary week of March, with fuel provide from Nigeria anticipated to renew shortly thereafter.
We’re anticipating a marked enchancment within the energy scenario as soon as this begins.
Dedication to reforms and sector stability
Regardless of the challenges, President Mahama reiterated his administration’s dedication to restoring stability within the power sector.
He introduced far-reaching reforms geared toward addressing the sector’s monetary woes and making certain sustainable operations.
These reforms embody imposing a single income assortment account, strictly adhering to the Money Waterfall Mechanism, and eliminating wasteful expenditures by state utilities.
Whereas the present state of our power sector poses grave issues, we should stay resolute in our dedication to restoring stability.
Mahama declared.
I’ve directed the Minister for Vitality and Inexperienced Transitions to implement far-reaching reforms, together with imposing a single income assortment account, strictly adhering to the Money Waterfall Mechanism, and eliminating all wasteful expenditures by the state utility.
