The Minority in Parliament has called on the government to explain challenges in the power sector, and desist from blame game, amidst conflicting accounts on the problem.
The caucus asked the government and its communicators to stay away from attempts to score political points, and rather come out with a formula to absorb capacity charges as part of operating cost.
“Instead of conceding on their shortcomings and being honest with Ghanaians, this government has adopted political chicanery, denial and misinformation as a cardinal tool, while the ordinary Ghanaian is made to bear the brunt of these avoidable power shortages,” Ranking Member on Parliament’s Mines and Energy Committee, John Jinapor, noted, at a press conference, in Accra, yesterday.
In a recommendation to government, the caucus identified mismanagement, lack of investment in the sector among other reasons as areas that should be addressed to resolve the problem.
Mr Jinapor, NDC MP, Yapei Kusawgu, said, the problem facing the energy sector was more serious than the “unconvincing excuses and blame game”.
He said the claim by the Minister of Energy, Dr Mathew Opoku-Prempeh, a couple of days ago, that the current power challenges were because the Bui Power Authority could not generate power and the subsequent repudiation of same by the Authority was indicative of the deep-seated problems facing the sector.
Mr Jinapor said it was a well-known fact, especially among energy sector players, that the current outages in the country was due to financial challenges and not because of technical challenges as being claimed.
“This is because the transmission lines and transformers are congested due to under investment and lack of regular maintenance arising from the poor financial health of the energy sector SOEs.
“Most of the energy sectors SOEs have continued to witness worsening financial positions since the assumption of office by President Akufo-Addo, despite his administration receiving over GH¢12 billion in ESLA revenues and almost GH¢20 billion in petroleum revenues over the past four years,” he stated.
Mr Jinapor said from a profit-making position in 2016, the Electricity Company of Ghana (ECG), which recorded a profit of over GH¢500 million under former President John Mahama, had posted cumulative losses of over GH¢4 billion since the 2017 financial year.
He noted that “the GRIDCo, which also posted profits in 2016 has equally taken a turn for the worst with total comprehensive loss of over GH¢600 million as captured in their 2018 financial Statement.”
He asked the government to end the profligacy it was known for in the power sector.
Mr Jinapor called on the government “to cut down on wasteful expenditure and inject the much needed capital into the power sector, especially GRIDCo, to make up for the impaired cash flow of these utilities.
“The government must desist from political interference in the management of the energy sector. Consequently, the government must refrain from engaging in political appointments especially within middle management levels when vacancies are declared.”
Mr Jinapor suggested that managers of the power sector should pursue long-term planning, to ensure fuel security for generating assets at the least cost possible.
He said Immediate steps needed to be taken to address the ECG’s spiraling technical and commercial losses currently estimated by its worker unions at 34 per cent.
BY JULIUS YAO PETETSI
