The Executive Secretary of the Public Utilities Regulatory Commission (PURC), Dr. Shaffic Suleman, has disclosed that the Government of Ghana spends an average of 92 million dollars every month, in addition to electricity tariffs paid by consumers, to keep power flowing across the country.
Speaking on the state of Ghana’s energy sector, Dr. Suleman revealed that the Ministry of Finance continues to make significant monthly financial interventions to sustain electricity generation and prevent power supply disruptions. He explained that the proceeds from the GH¢1 levy on petroleum products have already been deployed to address long-standing financial challenges within the sector.
According to Dr. Suleman, a report submitted to Parliament showed that about GH¢8 billion had been generated from the levy. He said the funds have been used to settle a substantial portion of arrears owed to Independent Power Producers (IPPs), restore risk guarantees for the Sankofa Gye Nyame gas project, and clear debts that had negatively affected Ghana’s creditworthiness.
He further noted that the government has successfully restored the World Bank risk guarantee with ENI, describing the development as a major boost to Ghana’s international image and credit profile. He added that part of the funds has also been used to pay gas suppliers, including those involved in the Sankofa and Jubilee fields, ensuring uninterrupted fuel supply for power generation.
Dr. Suleman emphasized that these financial interventions have significantly reduced the energy sector’s debt burden, although government continues to rely on borrowing to sustain operations. He stressed that maintaining a stable electricity supply throughout the year requires continuous support from the Ministry of Finance.
“Every month, aside from the electricity tariffs consumers pay, the Ministry of Finance contributes an average of 92 million dollars to ensure the lights stay on,” he said, underscoring the scale of government support needed to keep Ghana’s power sector operational.
Story by Freedom Etsey Lavoe
