The energy sector is currently burdened by debt, corruption, and mismanagement, which has severely impacted its ability to meet financial projections. This situation poses a significant risk to the supply of light crude and gas necessary for Independent Power Producers (IPPs) to operate their plants, leading to a critical shortage of power.
Corruption and mismanagement have negatively affected the financial standing of the energy sector, raising concerns that the country may face another round of load shedding. Edward Bawa, a member of Parliament for Bongo and the Energy Committee, expressed these views on the Adekyee Mu Nsem morning show on Ahotor 92.3 FM, hosted by Citizen Kofi Owusu in Accra.
The energy sector is financially demanding, and the government’s mismanagement has resulted in substantial debts on the balance sheets of Electricity Company of Ghana and other industry players.
Looking ahead, the Minority in Parliament has voiced concerns about the resurgence of load shedding, commonly referred to as “dumsor.” They attribute this issue to questionable contracts signed by the government through the Ghana Gas Company.
The Minority alleges that the Presidency is exerting pressure on the Ghana Gas Company to finalize an $800 million contract with the Phoenix Park Gas Processors Consortium under dubious circumstances, without parliamentary approval.
On September 24, the caucus reported a power deficit exceeding 500 megawatts, which has adversely affected consumers. John Jinapor, the Ranking Member on the Energy Committee, raised this concern during a press interaction.
“Due to these dubious contracts, load shedding is already in effect. GRIDCo has been instructed not to inform customers. On September 24, there was a deficit of over 500 megawatts. Load shedding will continue on September 25, impacting customers across Ghana,” he stated.
Additionally, Tullow Ghana has not received any payment for gas supplied to Ghana Gas for the past nine months and is threatening to curtail gas supplies. The Independent Power Producers have also sent a letter to the Minister of Finance indicating their intention to halt power supply due to debts and liabilities totaling around $1.2 billion. Unfortunately, the energy sector is on the brink of collapse.
Story by: Alexander Kukah
