Business News Sun, 19 Nov 2017

Government to cancel 11 NDC power purchase agreements

Government has initiated steps to cancel 11 Power Purchase agreements entered into by the Mahama administration.

Energy Minister Boakye Agyarko who revealed this to Parliament said implementation of 7 similar agreements have been deferred following a recommendation of a review committee set up by government.

According to him, the termination cost is over 400 million dollars. He however stated Ghana will in the long term make a saving of over 7billion dollars.

Speaking to the media after proceedings, Mr. Agyarko explained that the implementation of all the PPAs will result in excess power which will go waste.

The Energy minister also mounted a spirited defense for government proposal to Public Utility Regulatory Commission (PURC) for 13% electricity tariff reduction.


Many have argued the move amounts to usurping the powers of the commission. Agyarko however argues that argument is flawed on all fronts.

Responding to the claims of the Energy Minister to GhOne News, Minority spokesperson on energy Adam Mutawakilu said the claims of the Minister on the power purchase agreements are untenable.

He explained that the excess power can be exported. Mutawakilu maintains government is coercing the PURC to reduce tariffs.

Source: ultimatefmonline.com