Finance ministry fails to meet power sector payments, owes GHS1.28billion – PURC report

The Public Utilities Regulatory Commission (PURC) has disclosed that Ghana’s Ministry of Finance is in arrears of approximately GHS1.28 billion for power generators.

This debt, it says has contributed to the ongoing power supply issues in the country.

According to JoyNews’s analysis of PURC reports from August 2023 to February 2024, the finance ministry has not fulfilled its financial obligations under the Cash Waterfall Mechanism (CWM).

The Ministry’s shortfall since August 2023 has culminated in significant debt, with the latest missed payment in February 2024, amounting to nearly GHS197.11 million.

Eight state-owned enterprises, including GRIDCo, Bui, and VRA, were slated to receive funds of up to GHS197 million to prevent arrears in the power sector and ensure continuous electricity generation.

Despite PURC’s instructions issued since August 2023, the Ministry has yet to comply with the payment directives.

The CWM stipulates that “Level A” payments are to be made directly to Independent Power Produc
ers (IPPs) by the Electricity Company of Ghana (ECG), while “Level B” payments are designated for State-Owned Enterprises (SOEs) and fuel suppliers.

These payments by the ministry are aimed at addressing the shortfalls in the Level B category, ensuring that no arrears accumulate in the power sector.

Additionally, they facilitate the purchase of gas for electricity generation, thereby supporting the uninterrupted supply of electricity.

Source: Ghana Web