ACEP Director Warns President-Elect Mahama of GHS 50 Billion Annual Energy Sector Waste
The Executive Director of the Africa Centre for Energy Policy (ACEP), Benjamin Boakye, has highlighted the dire state of Ghana’s energy sector, warning that President-elect John Mahama is set to inherit a system burdened with waste amounting to GHS 50 billion annually.
In an open letter addressed to the President-elect, Mr. Boakye lamented the systemic mismanagement of the sector, noting that the financial strain is being passed onto citizens through high levies and margins.
Mr. Boakye attributed the colossal waste to bloated agencies, operational losses at the Electricity Company of Ghana (ECG), and substantial waste in both downstream and upstream activities.
He therefore urged President-elect John Mahama to prioritize energy sector reforms to curb waste and alleviate the financial burden on Ghanaians.
“The energy sector has been systematically decimated, enriching a few while the public bears the burden through the budget, levies, and high margins. Just to give you a sense of the gravity, the annual revenue from the oil sector is insufficient to cover the annual under-recoveries in the power sector,” he stated.
“This is despite the public paying approximately GHS 3 billion annually in levies and margins. In essence, the people are paying to plug holes that are leaking into the pockets of the revenue collectors.
“When you take office on January 7th, you will inherit an energy sector burdened by an overall waste of over GHS 50 billion a year,” he added.
Mr Boakye in the open letter further noted that, Mr Mahama will not have the luxury of a “honeymoon” when sworn into office as he would have to hit the ground running to fix the country’s energy sector challenges.
