President John Dramani Mahama has raised concerns about the alleged misappropriation of the Energy Sector Levy (ESLA) by the previous Akufo-Addo administration. He accused them of diverting the funds for purposes other than settling the energy sector debt, which was the levy’s primary purpose.
In a meeting with representatives of the Ghana Independent Power Producers (IPPs) on Monday, 13 January, President Mahama acknowledged the ongoing energy crisis and emphasized the need for practical solutions to address the challenges faced in the sector.
He recounted the challenges his administration encountered in the energy sector, leading to the signing of Power Purchase Agreements with IPPs to boost power generation. The ESLA, introduced in 2015, was meant to tackle the sector’s debt problems but was allegedly mismanaged under the New Patriotic Party (NPP) government after the National Democratic Congress (NDC) left office in 2016.
President Mahama expressed disappointment in the misuse of ESLA funds, stating that they were not utilized for their intended purpose of paying down the accumulated debt. He highlighted the importance of resolving issues in the downstream petroleum sector to improve power generation and reduce costs.
Addressing the inefficiencies in revenue collection and high losses of the Electricity Company of Ghana (ECG), President Mahama suggested the possibility of privatizing the company. He referred to ECG as the “sick man of the power sector” and stressed the need for private sector participation to address the utility’s operational challenges.
President Mahama assured the IPPs that his administration would work closely with them to implement effective solutions to the sector’s problems. He emphasized the importance of collaboration and strategic planning to ensure a sustainable and reliable energy supply for Ghana.
In conclusion, President Mahama’s commitment to addressing the energy sector’s challenges and his focus on transparency and accountability in the management of funds demonstrate his dedication to improving the country’s energy infrastructure. By working with stakeholders and implementing pragmatic solutions, he aims to create a more efficient and sustainable energy sector for the benefit of all Ghanaians.
