The Minority in Parliament is demanding a thorough audit of Ghana’s energy sector to evaluate the extent of its mounting debt, which they claim has surpassed $2 billion.

This call comes amid growing concerns about the government's handling of funds collected under the Energy Sector Levy Act (ESLA), which the Minority attributes to mismanagement.

John Jinapor, the Ranking Member on Parliament’s Energy Committee, voiced these concerns during a media briefing.

He specifically criticised the Ministry of Finance for failing to settle GH¢1.8 billion owed for electricity consumed by various Ministries, Departments, and Agencies (MDAs) since August 2023. This lack of payment, he argued, has significantly hindered the operational capabilities of the power sector.

Mr Jinapor emphasised that the escalating debt crisis is a direct result of the current administration's financial mismanagement and warned that it could lead to severe repercussions in the future.

He accused President Akufo-Addo's government of neglecting the energy sector, setting up a precarious situation for the next administration.

The Minority also expressed concerns that the government is planning to hand over a collapsed energy sector to former President John Dramani Mahama should he win the upcoming elections.

They believe addressing the debt and restoring the sector's functionality must be prioritised to prevent further deterioration.

In light of these issues, the Minority is urging the government to take immediate action, including a comprehensive audit, to bring transparency and accountability to the energy sector.

They assert that without decisive measures, the challenges facing the sector will continue to escalate, posing significant risks to Ghana's energy future.

“PURC based on its statement, has indicated that ECG is not abiding with the Cash Waterfall Mechanism and it is the mechanism that allows companies and entities throughout the energy sector value chain to get some revenue or payment, that has been jettisoned. As if that is not enough, the Ministry of Finance, since August 2023 has not paid up even a Cedi for power consumed by ministries, departments and agencies.

“From our rough estimates, that debt alone amounts to GH¢1.8 billion. Clearly, they are just trying to manage the system and hand over a dilapidated, ageing equipment, collapsed energy sector to President Mahama when he assumes office.”

“A lot of work awaits President Mahama when he assumes office. The energy sector debt alone, based on our rough estimate, is around $2 billion as we speak. They are misapplying the energy sector levy revenues and they are also misapplying the energy sector recovery levies,” he said.