Home Featured News Minority raises alarm over $700m power sector debt, demands transparency

Minority raises alarm over $700m power sector debt, demands transparency

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The Minority in Parliament has expressed concern over the financial state of Ghana’s energy sector, claiming the government owes more than $700 million to Independent Power Producers (IPPs) and fuel suppliers.

Addressing the media on Tuesday, April 28, Deputy Ranking Member on Parliament’s Energy Committee, Collins Adomako Mensah, said the challenges confronting the sector are not only technical but largely financial.

“We also know that the problems of the sector are not only technical; they are financial,” he stated.

According to him, available data suggests the government owes over $500 million to IPPs and an additional $200 million to companies that supply fuel for electricity generation.

Mr. Adomako Mensah noted that these figures appear to contradict earlier assurances by the Minister for Finance, Cassiel Ato Forson, who had indicated that outstanding debts to IPPs had been settled.

The Minority argues that the reported arrears raise questions about claims of improved financial performance within the Electricity Company of Ghana and the broader energy sector.

They are therefore calling on government to provide a clear account of the sector’s financial position, particularly in relation to the Energy Sector Levy, commonly referred to as the ‘Dumsor levy’.

The group is urging both the Energy and Finance Ministers to present to Parliament a comprehensive and independently verified report detailing all collections, disbursements, and the impact of the levy to date.

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