NPP wants to pass about GH¢2 billion ballooning energy debt to NDC - Minority

Ranking Member on Parliament’s Energy Committee, John Jinapor, has accused the governing New Patriotic Party (NPP) of planning to pass on the compounding energy sector debt to the next NDC government.

He stated that government is mismanaging the sector levies collected under the Energy Sector Levy Act (ESLA).

He further said the governing New Patriotic Party is trying to salvage the situation and hand over a dilapidated, ageing equipment and collapsed energy sector to NDC flagbearer, John Dramani Mahama if elected President of the Republic in the December 7 polls.

Addressing the media in Accra, John Jinapor said, “From our rough estimates, that debt alone amounts to GH¢1.8 billion. Clearly, they are just trying to manage the system and hand over a dilapidated, ageing equipment, collapsed energy sector to President Mahama When he assumes office.”

“A lot of work awaits President Mahama when he assumes office. The energy sector debt alone, based on our rough estimate, is around $2 billion as we speak. They are misapplying the energy sector levy revenues and they are also misapplying the energy sector recovery levies,” he added.

The Ranking Member on Parliament’s Energy Committee asserted that the Ministry of Finance, since August 2023 has not paid up for the power consumed by ministries, departments and agencies.

Meanwhile, the Public Utilities Regulatory Commission (PURC) has served notice that the Electricity Company of Ghana (ECG) may be on the verge of bankruptcy due to severe financial difficulties.

Executive Secretary of PURC, Dr. Ishmael Ackah, said these challenges have led to delays in salary payments and difficulties in covering administrative costs.

Despite efforts to improve cash collection through digital and metering programs and significant tariff increases of over 75% since September 2022, ECG's financial instability persists.

SA/MA

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