In a bold move to address inefficiencies in Ghana’s energy sector, the Finance Minister, Dr. Cassiel Ato Forson has announced the submission of a Legislative Instrument (LI) to Parliament. The new policy, aimed at ensuring competitive procurement of power generation services, marks a critical step toward transparency, accountability, and cost-efficiency in the sector.
Dr. Forson made this announcement during a high-level session on the Ghana Energy Compact under Mission 300 at the World Bank, underscoring the government’s determination to tackle the challenges crippling the country’s energy landscape.
“The submission of this Legislative Instrument to Parliament is a landmark decision,” Dr. Forson stated. “It mandates that all future procurement of power plants undergo a competitive process. This is the only way to ensure fairness, transparency, and value for money, which are crucial for a sustainable energy future.”
A Sector in Crisis
The Finance Minister did not mince words about the gravity of the situation. Ghana’s energy sector, he revealed, represents the single largest economic risk to the country, with a staggering financial deficit of $2 billion. Dr. Forson attributed much of this shortfall to inefficiencies in the value chain, particularly within the Electricity Company of Ghana (ECG).
“ECG’s inefficiencies alone account for a significant portion of the financial gap. If addressed, they could cut the deficit by half,” he explained. “We can not continue to pass these unnecessary losses onto consumers. It’s unsustainable and unfair to Ghanaians who are already bearing the brunt of high-energy costs.”
A Call for Urgency
Dr. Forson framed the Legislative Instrument as part of a broader strategy to revamp the energy sector and highlighted its importance in stabilizing Ghana’s economy. He urged Parliament to expedite the approval process, stressing that any delay could exacerbate the financial and operational challenges plaguing the sector.
“This is not just another policy document—it is a lifeline for Ghana’s energy sector,” he said. “The Energy Compact has come at a critical time, and we can not afford complacency. Time is of the essence.”
Toward a Sustainable Energy Future
The proposed reforms signal the government’s commitment to fostering a sustainable energy ecosystem that prioritizes efficiency, affordability, and accountability. Dr. Forson’s remarks serve as a clarion call for urgent action, aiming to shift the narrative from inefficiency to innovation and from financial loss to economic growth.
As Parliament deliberates the Legislative Instrument, all eyes will be on the government to deliver on its promise of meaningful reforms that prioritize the welfare of ordinary Ghanaians over the perpetuation of systemic inefficiencies.
Story by: Mercy Addai Turkson #ahotoronline.com
