Accra: President John Dramani Mahama has unveiled significant reforms in Ghana’s energy sector, highlighting substantial financial savings, enhanced gas payment compliance, and a strategic plan to stabilize electricity generation nationwide. Delivering the 2026 State of the Nation Address at Parliament House, President Mahama emphasized the inefficiencies plaguing the power distribution system, noting that only about 52 percent of energy supplied to the grid was effectively collected due to commercial and technical losses.
According to Ghana Web, President Mahama detailed the challenges at the distribution level, including system compression and revenue leakages, which have severely affected the financial sustainability of the sector. He pointed out that around 62% of the revenue collected was used to meet obligations to power producers and related entities, resulting in persistent liquidity issues.
The President cited a recent Media and Policy Action report that identified contracts and invoices in the energy sector totaling approximately $500 million. He reassured Parliament that corrective measures have been implemented, and the government is now fully up to date on gas consumption obligations. ‘Today, we are fully current on our gas payment commitments,’ he stated, countering claims of halted gas supplies. The government has negotiated a comprehensive roadmap with partners to ensure payment for all gas consumed in the future.
President Mahama highlighted that the new framework would support reliable electricity generation across the country while ensuring the financial sustainability of gas procurement and consumption. He announced a review and reduction of planned increases in certain gas-related levies, with additional policy measures to be unveiled next month, including a gas processing and management framework under the Ministry of Energy and Green Transition.
In a significant financial achievement, President Mahama reported that negotiations with nine Independent Power Producers (IPPs) have resulted in immediate savings of $250 million and the restructuring of approximately $1 billion in legacy debt over a 36-month payment period. ‘These agreements will be submitted to Parliament,’ he affirmed, emphasizing the government’s commitment to transparency and legislative oversight in implementing the revised energy sector arrangements.