The Minister for Energy and Green Transition, John Jinapor, has sounded the alarm over a growing debt crisis within Ghana’s power sector, revealing that Ghana Water Limited (GWL) owes the Electricity Company of Ghana (ECG) approximately GH₵1 billion in unpaid electricity bills accumulated over the past seven months.
Speaking during a meeting between the Parliamentary Energy Committee and key stakeholders in the energy sector, Minister Jinapor expressed deep concern about the financial strain this debt places on ECG. He emphasized that such a burden undermines the utility’s ability to deliver reliable power, and he directed ECG to take urgent measures to recover the outstanding funds.
“I was listening to the news at 10 p.m. when Ghana Water raised concerns about irregular power supply affecting their operations. While I sympathize with their challenges and acknowledge the need to improve our inherited systems, it is equally important to recognize that Ghana Water has not paid a single cedi in electricity bills for seven months,” he stated.
He continued, “The debt has now accumulated to GH₵1 billion. This level of financial pressure makes it unsustainable for ECG to maintain a consistent power supply. We cannot continue to place this burden solely on the private sector and ordinary citizens.”
In addition, the Minister disclosed that Karpowership, a major independent power producer (IPP) operating in Ghana, has informed the government of its intention to suspend operations on May 18 if a $400 million debt is not cleared. He further revealed that the total debt owed to all IPPs currently stands at $1.7 billion.
These revelations highlight the urgent need to address the financial difficulties within Ghana’s energy sector to avert disruptions in electricity supply and ensure the long-term viability of the industry.
Source: Citinewsroom
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