GNPC unable to pay WAPCo debt; ECG’s inability to settle off-takers – Armah-Kofi Buah on causes of power cuts

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Former Minister of Energy and Petroleum, Emmanuel Armah-Kofi Buah has explained the causes of power cuts in parts of the country recently.

He stated that the Ghana National Petroleum Corporation (GNPC) is currently unable to fulfill its payment obligations to the West African Gas Pipeline Company Limited (WAPCo), which is responsible for transporting gas from Takoradi to Tema for power generation.

In addition, he said one can track the ultimate problem to what he describes as the weakest link in the value chain which is the inability of the Electricity Company of Ghana (ECG) to pay off-takers.

He observed that Ghana is currently grappling with a severe case of Load Shedding, commonly known as Dumsor.

He said the situation is evidently clear, with 500 MW of load being shed as of  January 9th, 2024. Several parts of the country especially Accra have been plunged into darkness due to the unavailability of gas to fuel thermal plants within the Tema enclave which can be attributed to financial constraints.

“The Ghana National Petroleum Corporation (GNPC) is currently unable to fulfill its payment obligations to the West African Gas Pipeline, which is responsible for transporting gas from Takoradi to Tema for power generation. You can also track the ultimate problem to the weakest link in the value chain-ECG’s inability to pay off-takers.

“Compounding the situation is the absence of a load-shedding timetable, which hampers households and businesses from planning accordingly,” he said.

He added “The lack of transparency and communication regarding the power outage schedule only adds to the frustration and inconvenience experienced by the affected population. It is worth highlighting that even during the worst periods of Dumsor in the past, the power outage never reached the 500 megawatts threshold currently being shed yet the media associated with the NPP interestingly see this as no ‘Dumsor,’ ” he said in a statement.

Their loud silence on the current situation is deafening, he stressed.

“The Ghana Grid Company must, as a matter of urgency, come out with a load-shedding timetable to allow households and businesses to plan better,” the Ellembelle lawmaker said.