In a significant move aimed at addressing the financial turmoil within the energy sector, Minister of Energy and Green Transition, John Jinapor, has slashed the Electricity Company of Ghana’s (ECG) budget by 50%, reducing it from GH₵500 million to GH₵250 million. The budgetary reduction follows troubling reports of missing containers at the country’s ports, a situation attributed to unpaid clearance fees and the mounting debts owed to power producers.

The decision comes after it was revealed that ECG’s 2023 allocation was initially set at GH₵935 million for procurement, but the utility company had exceeded its budget by a staggering GH₵7.3 billion, largely due to an overpurchase of cables. This overspending has put significant pressure on the company’s revenue streams, further exacerbating its liquidity challenges.

Speaking before Parliament, Mr. Jinapor underscored the urgency of the situation, noting that ECG’s failure to manage its finances properly has contributed to the ongoing port discrepancies. “The bill in the energy sector has exceeded GH₵80 billion. If we don’t take decisive action, the sector risks collapsing,” he warned. Mr. Jinapor also emphasized that the revised budget would be instrumental in prioritizing payments to power producers, ensuring that the country’s energy infrastructure remains operational despite the ongoing fiscal challenges.

As the government grapples with these financial pressures, the Energy Minister has vowed to take all necessary steps to address mismanagement within the sector, which has become a focal point of national concern.

Source:TheDotNews