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The debt position of the energy sector as at the end of 2024 was $3.1 billion. This is made up of state-owned enterprises liabilities including those of contractors and suppliers.
The Minister of Energy and Green Transition, Mr. John Abdulai Jinapor, disclosed this in parliament in response to a question on the outstanding financial obligation to contractors and suppliers from 2017 to 2024 in the energy sector.
He said the Finance Ministry is soon going to make available some monies to the Ministry of Energy and Green Transition to pay for the short fall in the energy sector. He didn’t say how much.
Mr. Jinapor also told the house that following directives by the Energy Ministry in February this year, the Electricity Company of Ghana (ECG) has established a single holding account to enhance visibility and accountability in revenue collection.
Adding that this account aggregates revenues from all ECG district and regional offices allowing for streamlined monitoring and reporting.
The minister was in parliament to respond to a series of questions including strategies being implemented to enhance revenue collection to reduce debt accumulation in the energy sector.
According to him, the single holding bank account submits a monthly report on ECG collections to the Public Utilities Regulatory Commission (PURC) each month, with PURC providing verification and approval for further action by the Cash Waterfall Mechanism Committee.
The Minister added that this mechanism ensures timely and transparent reporting of electricity revenues.
Again, Mr. Jinarpor said recent reforms and policy measures undertaken by government have significantly contributed to exchange rate stability, bolstering the value of the Ghana cedi against the US dollar.
This situation he noted has had a positive impact on revenue performance and helping to mitigate foreign exchange-related losses in the energy sector.
Earlier, the Minister responded to a question on reforms being implemented at ECG to mitigate illegal electricity connection and meeting challenges to improve revenue efficiency, as well as measures to reduce technical and commercial losses.