In an effort to stabilize electricity, Ghana’s finance minister, Dr. Cassiel Ato Baah Forson, has announced the private sector’s involvement in the energy industry through the purchase of power plants.
“Cabinet has already approved private sector participation, and we have submitted the Legislative Instrument to Parliament to enable competitive procurement for power plants,” he said.
Following talks on the Ghana Energy Compact under Mission 300 at the 2025 World Bank Group (WBG)/International Monetary Fund (IMF) Spring Meetings in Washington, DC, USA, the minister made this announcement.
“The Energy Compact has come at the right time. It has the potential to make a lasting impact, and we are hopeful that the process will not be delayed. “
“These are critical steps toward bringing transparency and sustainability to the sector,” he said.
Ghana’s worst economic danger, according to Dr. Forson, is the US$2 billion financial deficit in the energy industry. He promised a prompt government response.
“This challenge goes beyond tariffs… The Electricity Company of Ghana (ECG) alone could cut the shortfall by half if it addresses these inefficiencies,” he noted.
“Time is of the essence. We must act swiftly to turn this around for the good of our economy and the well-being of our people,” he added.
Dr. Forson emphasized that in order to avoid excessive tariffs for customers, the energy sector needs immediate reforms, especially in distribution.
Delays in energy sector reforms and policy measures were noted by the IMF team during Ghana’s Fourth Review under the Extended Credit Facility (EFC) program.
The team recommended structural improvements and quarterly adjustments to electricity tariffs in order to close the sector’s deficit and prevent the buildup of new arrears.
Since then, the Public Utilities Regulatory Commission (PURC) has declared a 14.75 percent rise in power rates, which will take effect on May 3, 2025. The hike is intended to minimize the impact on consumers while guaranteeing “revenue stability for utility service providers.”
Source: newsthemegh.com