The Executive Secretary of the Public Utilities Regulatory Commission (PURC), Dr. Shafic Suleman, has disclosed that the government injects approximately $92 million every month into the energy sector to ensure a stable electricity supply across the country.
According to him, the monthly financial support from the Ministry of Finance has been critical in keeping Ghana’s power sector operational amid persistent liquidity challenges and the accumulation of debts owed to power producers and gas suppliers.
Dr. Suleman explained that a significant portion of the funding comes from the one-cedi levy on petroleum products, introduced to help address the financial difficulties confronting the energy sector.
He said the levy has so far generated about GH¢8 billion, enabling the government to clear substantial outstanding obligations and restore confidence in Ghana’s energy sector.
“Every month, about $92 million goes in from the Ministry of Finance to keep the lights on,” he stated.
Providing details on how the funds have been utilized, Dr. Suleman said most of the accumulated revenue has been used to settle arrears owed to Independent Power Producers (IPPs), whose operations are essential to electricity generation in the country.
He noted that the government has also used part of the funds to restore the World Bank Risk Guarantee covering gas supplied from the Sankofa Gye Nyame field, a move he said has strengthened Ghana’s credibility with international partners and improved the country’s financial outlook.
“The money has accumulated to about GH¢8 billion. We’ve used that amount to pay off most of the arrears owed to the IPPs. We have also restored the World Bank Risk Guarantee with Eni, which had been affected by Ghana’s accumulated debt. That has improved the country’s credit rating and made Ghana’s energy sector more credible,” he explained.
Dr. Suleman further disclosed that the funds are being used to finance payments for gas supplied by the Sankofa partners, the Jubilee partners and N-Gas, ensuring a continuous supply of fuel for thermal power plants.
He stressed that these payments have been instrumental in maintaining stable electricity generation and preventing disruptions to power supply.
“We have also used the funds to pay for gas supplied by the Sankofa partners, the Jubilee partners and N-Gas. From the accounts I have seen, these payments are helping sustain the sector, and that is actually what is keeping the lights on,” he added.
The PURC Executive Secretary said although the intervention has eased the financial pressure on the power sector, long-term structural reforms remain necessary to improve operational efficiency, strengthen revenue collection and reduce the sector’s dependence on government financial support.
His remarks underscore the continuing financial burden on the state as it works to sustain reliable electricity supply while addressing longstanding debt challenges within Ghana’s energy sector.
Source: Newspyramid.com
