Electricity relief: Akufo-Addo cautioned against increasing energy sector debt

Executive Director of the Institute for Energy Security (IES) Ghana, Paa Kwasi Anamua Sakyi has cautioned the government against acts that could lead to a pile up of energy sector debts following the implementation of electricity relief for Ghanaians.

In his sixth national address to the nation on the novel coronavirus on Thursday, April 9, 2020, President Akufo-Addo said that government will fully cover the bills of low-income consumers of electricity and a 50 percent reduction in the cost of same for consumers in other categories in the country for April, May and June 2020.

Even though Mr Sakyi thinks the initiative is commendable, he says government must ensure that payments are made to the Electricity Company of Ghana (ECG) on time.

Speaking in an interview on Me Man Nti programme on Neat FM, Kwasi Anamua Sakyi said governments often make promises in the form of subsidies to Ghanaians and when it comes to redeeming its image, it becomes problematic.

"We are grateful for what government has done but they should make sure at the end of the month, the money is paid to ECG so that it will not accrue otherwise the energy sector debt will increase. If that happens, there will be no efficiency in the energy sector. It will be bad and an inconvenience will be created if the money is not paid. They can even pay in advance like prepaid because we have experienced a situation where any time there is a subsidy, it is not paid and then it accrues and that is why we have energy sector debt. So we plead with government not to add to the debt," he urged.

Meanwhile, the Head of Communications and Public Affairs at the Ministry of Energy, Nana Damoah has stated that the cost of electricity reliefs by governments will not affect the country’s energy sector debt.

“This will not in any way affect the current position of the energy sector in terms of debt because government, led by the President, made a decision to provide some relief to the people of Ghana in this era of COVID-19. What this means is that this cost or this debt we are about to incur has been planned for by government and government will provide those amounts of money from outside the normal operations of the electricity company of Ghana. So government has said these amounts that have been brought before it is going to be paid on a monthly basis. It, therefore, does not affect the revenue of the ECG in any way. The Ministry of Finance has given the highest assurances that the money has been found and is available to be paid at the end of every month to ensure the continuous operation of all of these,” he reportedly said on Accra based Citi FM.