Hon. Andrews Egyapa Mercer, the Deputy Minister of Energy in the erstwhile administration, has questioned the ruling government’s attempt to claim praise for renegotiating expensive Power Purchase Agreements (PPAs) with Independent Power Producers (IPPs).
Mercer argued that the government is rewriting history and distorting the country’s accountability by positioning itself as the savior, despite the fact that the very Power Purchase Agreements (PPAs) it claims to have renegotiated were originally signed during the previous administration’s tenure.
Mercer’s comments come in response to the recent announcement in the 2026 Budget Statement, where Finance Minister Dr. Cassiel Ato Forson claimed that the government’s renegotiation of Power Purchase Agreements (PPAs) with Independent Power Producers (IPPs) saved the country over $250 million.
However, Mercer asserted that the ruling government should not be claiming credit for resolving a crisis it created during its previous administration.
“This is a classic case of political theater where credit is claimed for resolving a crisis the same government created during its previous administration,” Mercer asserted.
He also explained that between 2012 and 2016, under President John Mahama and the National Democratic Congress (NDC) government, Ghana contracted excessive and costly PPAs with IPPs, which resulted in the country having nearly double the required power capacity.
This, in turn, forced taxpayers to pay for unused excess power, draining public finances significantly.
“This reckless energy sector expansion was a major contributor to the economic downturn before and during the COVID-19 pandemic. The financial burden was borne by every Ghanaian and became a key reason the economy was labeled mismanaged. The current government conveniently ignores this origin and positions itself as the savior for ‘renegotiating’ these contracts. In truth, it was the succeeding NPP administration that took on the challenge of renegotiating payment terms with the IPPs, achieving some success despite many difficulties.”
Hon. Andrews Egyapa Merce
Energy Sector Improvement
The renegotiation of the Power Purchase Agreements (PPAs) has had a tangible impact on the Ghanaian energy sector.
The government’s efforts have resulted in the reduction of tariffs and a reported savings of over $250 million, according to the Finance Minister’s announcement in the 2026 Budget Statement.
These savings have the potential to be reinvested into the energy sector, allowing for further improvements and the development of sustainable energy infrastructure.
The government’s commitment to addressing the inherited debt and restructuring the Power Purchase Agreements (PPAs) demonstrates its recognition of the importance of a well-functioning energy sector to the country’s overall economic growth and development.
Transparency and Accountability
However, Hon. Egyapa argued that the government’s claims in the budget statement oversimplify the situation and fail to acknowledge the full context of the PPA renegotiation process.
He also noted that while the government’s actions are important, they build on the efforts first made by the New Patriotic Party (NPP) government to address the inherited debt.
Hon. Egyapa stressed that Ghanaians deserve transparency and accountability, and the country must not normalize financial irresponsibility or accept that governments can create crises and then take credit for fixing their own messes.
He emphasizes that the energy sector needs genuine reform rooted in prudence and transparency, not political spin.
Egyapa Mercer’s critique highlights the need for the ruling government to approach the energy sector’s challenges with a genuine commitment to transparency and accountability.
While the PPA renegotiation efforts have yielded some positive results, the government must acknowledge the full context of the situation and avoid rewriting history for political gain.
Only through a holistic, transparent, and responsible approach can the country truly address the longstanding issues in the energy sector and ensure a sustainable and prosperous future for all Ghanaians.
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