Story by: Bawa Musah
Ghana’s energy sector debt has surged to a staggering $3 billion, according to Energy Minister Designate, John Jinapor, who raised the alarm during his parliamentary vetting.
Jinapor attributed the ballooning debt to financial mismanagement, non-payment of electricity bills by government agencies, and inefficiencies within the Electricity Company of Ghana (ECG).
The Ministry of Finance’s failure to settle approximately GH¢1.8 billion owed for electricity consumed by government agencies has significantly impacted the power sector’s operations. Jinapor emphasized the need for immediate action to prevent further deterioration, warning that the energy sector’s challenges would continue to escalate without decisive action.
Key Factors Contributing to the Debt:
- Financial Mismanagement: Poor management of funds has contributed significantly to the debt.
- Non-Payment of Electricity Bills: Government agencies’ failure to pay electricity bills has added to the debt.
- Inefficiencies within ECG: Inefficiencies within the Electricity Company of Ghana have also contributed to the debt.
Jinapor called for a comprehensive audit of Ghana’s energy sector to assess the full extent of the debt and implement measures to restore financial stability.
Stakeholders and industry experts have echoed the need for transparency and accountability to address the sector’s mounting debt and ensure a sustainable energy supply for Ghanaians.
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