Ghana’s energy sector is facing a critical challenge, with the Ministry of Energy and Green Transition, John Jinapor 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.
“The fuel we have will last us just 2.6 days,” Minister Jinapor stated, highlighting the immediate nature of the problem.
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.
He specifically cited Ghana Water Limited, revealing that the entity has not settled its electricity bills for the past seven months, despite continuous power usage. “Ghana Water Limited has not made any payment for the past seven months to the ECG but continues to consume the power,” he disclosed.
This situation he notes, has exacerbated the financial strain on the power sector and raises broader questions about financial discipline and accountability among state agencies.
He announced a new policy requiring all Ministries, Departments, and Agencies (MDAs) to make budgetary allocations for their power consumption going forward. He stressed the importance of MDAs taking responsibility for their electricity costs.
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The Minister clarified that while the policy applies broadly, critical institutions have been identified, and specific exemptions will be applied within these sectors.
“All MDAs are supposed to pay for their electricity bills. They have to budget for it. These include the health sector, education, security agencies, and the presidency,” he said.
He further detailed the nature of exemptions: “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 added.
