Energy: Gov’t to conclude renegotiations with IPPs capacity charges to generate ¢1.5bn – Ofori-Atta

The Government will conclude the renegotiation of the Energy Sector Independent Power Produces (IPPs) capacity charges by end of third quarter of 2022, the Finance Minister has said.

He said this will further reduce excess capacity payments by 20% to generate a total savings of GHS1.5 billion.

Mr Ofori Atta said this while announcing new measures to deal with the economic challenges, in Accra on Thursday March 24.

“Government will conclude the renegotiation of the Energy Sector IPPs capacity charges by end of Q3-2022 to further reduce excess capacity payments by 20% to generate a total savings of GHS1.5 billion,” he said.

He further announced that with immediate effect, the Government has imposed a complete moratorium on the purchase of imported vehicles for the rest of the year.

He said this will affect all new orders, especially 4-wheel drives.

“With immediate effect, Government has imposed a complete moratorium on the purchase of imported vehicles for the rest of the year. This will affect all new orders, especially 4-wheel drives. We will ensure that the overall effect is to reduce total vehicle purchases by the public sector by at least 50 percent for the period,” he said at a press conference on Thursday March 24 while announcing measures introduced to deal with the economic challenges.

“Again, with immediate effect Government has imposed a moratorium on all foreign travels, except pre-approved critical/statutory travels; Government will conclude on-going measures to eliminate “ghost” workers from the Government payroll by end December 2022;

“Discretionary spending is to be further cut by an additional 10%. The Ministry of Finance is currently meeting with MDAs to review their spending plans for the rest of the three (3) quarters to achieve the discretionary expenditure cuts; ii. these times call for very efficient use of energy resources.

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“In line with this, there will be a 50% cut in fuel coupon allocations for all political appointees and Heads of government institutions, including SOEs, effective 1st April 2022,” he added.

By Laud Nartey|3news.com|Ghana