No need for panic; 450,000 barrels of fuel procured – Energy Ministry assures

Ghana's power supply and energy sector debt are causing public concern. The Ministry of Energy is taking steps to reassure citizens. They aim to stabilize the situation.

Richmond Rockson, the Ministry's Head of Communications, spoke on Starr News. He provided an update on current efforts and challenges in the energy sector.

Rockson mentioned that 450,000 barrels of Light Cycle Oil have been procured. More supplies are expected soon. He urged citizens not to panic about recent fuel shortages affecting electricity generation.

However, he acknowledged significant financial challenges in the sector. Ghana faces a debt of about $3 billion. The Electricity Company of Ghana (ECG) experiences monthly under-recovery of around GH₵2 billion. This amounts to nearly GH₵30 billion annually.

Under-recovery means ECG cannot fully recoup electricity supply costs from consumers. Rockson noted this disparity contributes to ongoing financial strain in the sector.

He highlighted systemic inefficiencies as a critical area needing reform. “The core issue is inefficiency within the system,” he stated.

One major challenge is that fuel costs are not included in tariffs. Consequently, the government must intervene financially to maintain power supply. This model is unsustainable.

While short-term measures are being implemented, broader reforms are necessary. Rockson emphasized the government's commitment to providing stable power supply.

He concluded that long-term solutions must address structural inefficiencies and growing debt issues for a sustainable energy future.