The Energy Committee in Parliament is gearing up to summon Samuel Dubik Mahama, the manager of the Electricity Company of Ghana (ECG), for his failure to attend a parliamentary inquiry regarding the ongoing power outages and financial challenges plaguing the energy sector.
Honorable Edward Abambire Bawa, the Member of Parliament for Bogo, made this announcement during an interview on the Adekyee Mu Nsem morning show on Ahotor 92.3 FM, hosted by Citizen Kofi Owusu in Accra. Bawa expressed deep concern over the situation, particularly criticizing the Ministry of Energy’s response to the energy crisis as disrespectful to Ghanaians.
He emphasized that the lack of adequate funding has severely weakened the grid’s transmission and distribution capabilities. Without addressing these financial issues, Bawa warned that the power outages, known locally as “Dumsor,” would persist, adversely affecting businesses and daily life.
Adding to the complexities, financial constraints have left the ECG and the Northern Electricity Distribution Company (NEDCo) unable to cover their expenses. This has resulted in outstanding debts to fuel suppliers, power generators, and transmission companies like West African Gas Pipeline Company (WAPCO) and GRIDCo.
Reports indicate that the outstanding debt owed to Independent Power Producers (IPPs) has soared from $2 billion in June 2023 to a staggering $2.2 billion currently. While a planned shutdown was recently averted after ECG offered a payment plan to IPPs, the underlying financial challenges remain unresolved.
Looking ahead, Nana Amoasi VII, Executive Director of the Institute for Energy Security (IES), warned of a further deterioration in Ghana’s power situation by 2025. He emphasized the urgent need to address the sector’s financial woes, stressing that denial of the problem only exacerbates the crisis.
Amoasi underscored the critical role of financial stability in sustaining the power sector, likening cash flow to lubrication in a car engine. Insufficient funds lead to friction and eventual collapse, he cautioned, urging stakeholders to acknowledge and tackle the root causes of the problem.
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