All MDAs will pay for their electricity consumption – John Jinapor

The Minister of Energy and Green Transition, John Jinapor, has announced that all Ministries, Departments, and Agencies (MDAs) will now be required to make budgetary allocations for their power consumption.

Speaking during a meeting between parliamentary select committee on energy and agencies in the energy sector, the Minister explained that the move is to ensure a viable energy sector.

He emphasised that critical institutions have been identified with some exemptions expected.

“Cabinet has also adopted a position… All MMDAs must also pay for electricity bills and budget for it. We have identified what we call critical institutions including the health sector, education sector, security agencies and presidency. Even with that, in the health sector, it is the laboratories, theatres, and wards that will be exempted.

“In the educational sector, dormitories and restaurants are not included; it is just the lecture halls. We have classified these, and parliament is approving, so we can publish them,” he said

The meeting is to consider the 2025 programme of activities. Some of these agencies include Energy Commission, PURC, GRIDCo, NEDCo, Bui Power Authority, VRA and ECG.

Mr Jinapor said Ghana’s energy sector is facing a critical challenge, revealing an urgent need for GH₵1.1 billion to procure liquid fuel for power generation.

The situation he opined is dire, as existing fuel reserves are projected to last for a mere 2.6 days.

Addressing the Parliamentary Energy Committee during a stakeholder meeting on Thursday, May 15, Mr. Jinapor sounded the alarm regarding the precarious state of the nation’s fuel supply for power plants.

While acknowledging that orders have been placed for additional fuel, he emphasized the hurdle of payment.

“Although we have placed orders for more fuel, these must be paid for. Some fuel has been procured on credit, and we are coordinating with the Ministry of Finance for payment. However, the Ministry of Finance also faces its limitations,” he explained.

Minister Jinapor indicated that the government plans to hold discussions at the Cabinet level to devise sustainable strategies to address the ongoing challenges. These discussions are expected to explore various options, including the potential involvement of the private sector in ECG’s operations to enhance efficiency and improve revenue mobilization efforts.

Beyond the immediate fuel concerns, the Minister also shed light on the persistent issue of non-payment by public institutions for electricity consumed.