The Worldwide Financial Fund (IMF) has talked about that Ghana’s annual power sector shortfall is estimated to achieve US$2.2 billion by December 2025.
In response to the Fund this displays the Electrical energy Firm of Ghana’s (ECG’s) giant industrial and technical losses and sluggish electrical energy tariff adjustment within the face of trade price fluctuations and better energy technology prices.
The priority by most analysts is that regardless of the various taxes paid by petroleum shoppers, the nation’s power sector debt won’t come down anytime quickly.
The 2025 Price range has allotted GH¢27.1 billion (round US$1.7 billion) to cowl the shortfall, assuming that coverage actions might be taken to assist scale back it. These embody resuming quarterly tariff changes and accelerating implementation of the Power Sector Restoration Programme measures—together with conducting a multi-year tariff evaluation (MYTO) to mirror adjustments within the prices of power manufacturing (end-September 2025 SB), enhancing income assortment, and limiting arrears accumulation.
The Fund mentioned some progress has not too long ago been made in addressing the power sector’s challenges.
These included that the Public Utilities Regulatory Fee (PURC) announcement of a 14.75% improve in electrical energy tariffs in April 2025, after having maintained tariffs unchanged in December 2024 and March 2025, and the Cupboard approval of opening an influence distribution to personal sector participation (end-September 2025.
The publication of 2023 Quarter 4 and 2024 ECG Income/Assortment Accounts Validation Studies (end-January 2025) was accomplished with a delay, as a result of it coated a interval longer than envisaged.
In response to the IMF, the 2024 report highlighted that the Money Waterfall Mechanism (CWM)—a framework to make sure the distribution of ECG’s revenues to stakeholders—was not carried out in line with its pointers, with vital deviations between ECG’s validated and declared collections (GHS5.3 billion) and between CWM allocations and precise funds (GHS3.9 billion).
Regardless of this enchancment, the Fund some Impartial Energy Producers obtained lower than anticipated, as gasoline funds and the addition of an IPP diluted CWM distributions.
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