Minister of Energy and Green Transition, Mr John Jinapor, has announced a significant reduction in the Electricity Company of Ghana’s (ECG) budgetary allocation.
The allocation has been slashed from GH₵500 million to GH₵250 million, following reports of missing containers at the port due to unpaid clearance fees.
According to Mr Jinapor, the decision aimed to help settle debts owed to power producers, which had accumulated to over GH₵80 billion in the energy sector. “Mr Speaker, we have reduced their budget from GH¢500 million to GH¢250 million. Because we must pay the power producers. Today, the bill is over GH¢80 billion in the energy sector. If we don’t do something, this sector will collapse,” Mr Jinapor stated on the floor of Parliament on Friday.
The financial strain on ECG is attributed to the company’s excessive spending, particularly on cable purchases.
In 2023, ECG was initially allocated GH₵935 million for planned procurement, but the company exceeded its budget by a staggering GH₵7.3 billion.
Mr Jinapor assured Parliament that steps were being taken to prevent further financial mismanagement and ensure ECG remained operational.
The minister’s efforts to address the financial challenges facing the energy sector are crucial in preventing a collapse of the sector.
GNA
LAA
March 28 2025
