Benjamin Nsiah, Executive Director of the Center for Environmental Management and Sustainable Energy (CEMSE), has pointed to severe financial constraints in Ghana’s energy sector as the cause of the ongoing intermittent power outages, commonly referred to as “Dumsor.”
According to Mr. Nsiah, the government owes Independent Power Producers (IPPs) and State-Owned Enterprises (SOEs) a substantial $2 billion, impacting the cash flow needed for sustained energy production.
He revealed that despite generating power for distribution by the Electricity Company of Ghana (ECG) and the Northern Distribution Company (NEDCo), payments have not been made, putting a strain on energy suppliers.
Mr. Nsiah explained that many IPPs are now hesitant to continue operations due to inconsistent payments and the government’s lack of transparency regarding revenue sources.
He warned that Ghana could face even more severe power outages in November if the situation persists.
Mr. Nsiah emphasized that the nation’s energy capacity has diminished significantly, with a reported loss of 1,000 megawatts, particularly affecting peak-hour supply.
He highlighted that the IPPs and SOEs lack the necessary funds to procure fuel and natural gas to power generators, further intensifying the power crisis.
Additionally, Mr. Nsiah criticized ECG’s revenue collection, citing that while ECG received $15 billion worth of power supply, only $9 billion was collected as revenue.
He blamed the government for failing to restructure ECG to address these inefficiencies.
Mr. Nsiah concluded by expressing that IPPs have lost confidence in the government and are reluctant to sign any new Memoranda of Understanding regarding payment agreements, posing an even greater threat to the stability of Ghana’s energy supply.
He spoke in an interview with Accra’s Kessben FM.
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