Reviewed power purchasing agreements will save Ghana $700m annually – Boakye Agyarko

Power purchasing agreements signed by the erstwhile Mahama-led administration would have cost Ghana an annual extra capacity charges of $700 million if it had been implemented, Energy Minister Boakye Agyarko has revealed.

According to Boakye Agyarko, deal-driven generation capacity procurement has resulted in the high average tariff for power, making Ghana’s power the most expensive in the West African sub region.

Mr. Agyarko asserted that about 30 power purchasing agreements have been reviewed by his government to ensure value for money.

Boakye Agyarko who was speaking at the 2017 Energy Ghana Summit said Ghana’s tariff structure doesn’t provide adequate safe guard for the deprived in society adding that the tariff structure exploited the vulnerable and industry.

Meanwhile government has expressed commitment to ensure the full implementation of the Millennium Challenge Power Compact II, even as it strives to remove the misconceptions raised by Electricity Company of Ghana (ECG) workers and civil society groups.

The Energy Minster was optimistic that government will complete the processes outlined in the compact which will enable the country to access a grant of close to US$500 million to be invested in to the power sector.

“Our position is, yes there is the compact; let us take on board all the issues that have been raised by ECG workers, Civil Society and others and let us see if we can find common grounds to reduce the tensions, remove some of the misconception so the project can move forward.