Energy Ministry Refutes $700M Energy Sector Debt Claims, Sets Record Straight

The Ministry of Energy has rejected claims by the Minority in Parliament that the government is indebted to Independent Power Producers (IPPs) and fuel suppliers by more than $700 million, describing the assertion as inaccurate and misleading.

The disagreement follows comments made by the Deputy Ranking Member on Parliament’s Energy Committee, Collins Adomako Mensah, during a press briefing on Tuesday, April 28.

In his address, Adomako Mensah argued that the difficulties confronting Ghana’s energy sector are not merely technical in nature but are significantly driven by deep-seated financial challenges.

According to him, the alleged mounting debts owed to IPPs and fuel suppliers are a major contributor to the instability within the power sector.

However, the Ministry of Energy rejected the Minority’s claims, insisting that the narrative being pushed does not reflect the reality on the ground.

“When there is an issue, it is not mandatory to speak if you don’t have anything of value to add to the conversation. The Minority’s allegations are a figment of their own imagination. Have you heard in the last one year of any power producer saying they have not been paid and want to cut generation?

“There is absolutely no issue when it comes to payments, and so let us put that aside and concentrate on the most important things. The distribution challenges that we have been having have nothing to do with debt.”

The Ministry’s response shifts the focus away from financial obligations and instead highlights inefficiencies within the power distribution system as the primary source of the sector’s ongoing challenges.

According to Rockson, these distribution bottlenecks, rather than alleged unpaid debts, are responsible for any disruptions experienced by consumers.