The Minority Caucus in Parliament has urged President Nana Addo Dankwa Akufo-Addo and the Management of the Electricity Company of Ghana to take immediate steps to redeem its indebtedness to the Sunon-Asogli Power Limited, an Independent Power-Producing company in the country.
In a statement released on Tuesday, December 5 2023, the Deputy Minority Leader, Honorable Emmanuel Armah Kofi Buah attributed the ‘indefinite shutdown’ of the 560MW Sunon-Asogli Thermal Plant by Sunon-Asogli Power Limited to the ‘gross mismanagement’ that has plagued the country’s energy sector under the New Patriotic Party administration.
According to the Member of Parliament for Ellembele Constituency in the Western Region, the ‘once-thriving’ energy sector the National Democratic Congress bequeathed to President Akufo-Addo and Vice President Dr Mahamudu Bawumia’s administration has now been thrown into a total ‘disarray’ due to flagrant mismanagement of the sector.
“It is very retrogressive and disheartening to learn about the indefinite shutdown of the 560MW Sunon-Asogli Thermal Plant by Sunon-Asogli Power Limited, a major player in the country’s power sector. I have come across a statement issued by the Company which cites a host of reasons including protracted delays in payment of invoices, and what it describes as ‘unproductive engagement’ to resolve the government’s outstanding to them”.
Emmanuel Armah Kofi Buah
Minority Chastises Government Over Mismanagement Of ESLA
Furthermore, the former Minister of Energy under the erstwhile Mahama administration chastised President Akufo-Addo and the New Patriotic Party administration for mismanaging the revenues of the Energy Sector Levy which was purposely established by the National Democratic Congress and Mahama administration to address the debt in the energy sector.
He emphasized that the mismanagement of the proceeds of the Energy Sector Levy by the New Patriotic Party administration has further exacerbated the financial instability of the country’s power sector.
According to him, one of the key contributing factors to the power crisis the country is currently facing is due to the continuous ‘mismanagement’ and ‘misapplication’ of the Energy Sector Levy Act (ESLA) by President Akufo-Addo and the New Patriotic Party administration.
“The erstwhile NDC government led by President Mahama in its determination to strengthen the financial base of the power sector, promulgated a special purpose vehicle called the Energy Sector Levies Act (ESLA) in 2016 to deal with the energy sector legacy debts by raising long-term bonds in addressing the financial challenges facing the sector, particularly in debt management.
“While in opposition, the NPP labelled the ESLA as a nuisance tax and promised to scrap same when they win political power. However, after assuming the reins of government in 2017, not only has this Akufo-Addo/Bawumia NPP government increased the ESLA levy, but this government has collateralised ESLA for fifteen (15) years to raise monies which they have misapplied, thus defeating its original purpose and eroding the gains made in settling all legacy debts in the sector”.
Emmanuel Armah Kofi Buah
Moreover, the Deputy Minority Leader, Honorable Emmanuel Armah Kofi Buah lamented over the mismanagement and the inefficiencies that have plagued the Electricity Company of Ghana under the New Patriotic Party administration and described it as ‘disquieting’.
He noted that the consequences of the mismanagement of the country’s energy sector portend severe danger for the country as the debts in the energy sector keep increasing with each passing day and indicated that the situation if not addressed immediately by the government could lead to a more severe power crisis regime to the country.
He thus admonished President Akufo-Addo and the New Patriotic Party administration to demonstrate leadership and engage the Independent Power Producers (IPPs) in the country to address the ‘imminent catastrophic’ power crisis the country faces.
“It is quite troubling for an IPP to produce power all year (January to December 2023) and get paid for only 24% of its invoices. No IPP can operate viably and sustainably under these circumstances. Already, due to the announced shutdown of the Sunon-Asogli Power Plant alone, parts of Accra were plunged into darkness last night. The earlier this government took steps to honour its obligations to IPPs, the better it will be for all of us”.
Emmanuel Armah Kofi Buah
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