Pay for power or be disconnected - Energy Minister warns gov't agencies

Minister for Energy, John Jinapor, is taking action against Ministries, Departments, and Agencies (MDAs) that owe money to the Electricity Company of Ghana (ECG). He warned that these agencies risk disconnection if they do not pay their debts.

During a meeting with the Energy Committee of Parliament, Mr. Jinapor highlighted the alarming debt levels owed by state agencies. He specifically mentioned the Ghana Water Company Limited, which has not paid any amount in seven months.

He expressed empathy for Ghana Water's complaints about power supply issues. However, he pointed out that they have not made any payments during this time.

Mr. Jinapor emphasized that ECG must collect all outstanding debts to stabilize the power sector. He stated that taxpayers should not subsidize ECG's inability to collect payments.

The Minister explained that Cabinet approved guidelines to exempt only a few essential services from disconnection. These exemptions will be limited to key functions within critical institutions like health and education.

He clarified that while some sectors may be exempted, others will still need to pay their bills. For example, only specific areas in hospitals and educational institutions will qualify for exemptions.

Mr. Jinapor also shared insights from his recent participation at the Offshore Technology Conference (OTC). He noted significant interest from major oil companies in Ghana’s petroleum sector.

He mentioned meetings with Exxon and other companies expressing interest in investing billions in the sector. The government is working on reforms to make the Petroleum Exploration and Production Act more attractive to investors.

The Minister said crude oil production is declining rapidly, which is concerning. He assured that reforms would also target improvements in the distribution sector.

Additionally, Mr. Jinapor announced that Cabinet has approved a formula for future legislation regarding these reforms. He indicated plans to bring this formula before Parliament soon for further discussion and approval.