Energy Minister calls for end to dollar pricing in energy sector
The practice of pricing energy sector fees and tariffs in dollars is causing rising debt in the sector, according to Ghana’s Energy Minister, Dr. Matthew Opoku Prempeh.
Despite the Bank of Ghana’s Foreign Exchange Act, Act 2006 prohibiting pricing in foreign currencies, power producers and other players in the sector continue to charge in dollars, causing the energy sector’s debt to reach an estimated $12.5 billion by the end of the year.
The Energy Minister has expressed concern that this practice is contributing to the rising debt, particularly in the case of the Electricity Company of Ghana (ECG), which owes over $1 billion to Independent Power Producers and $614 million to Bui Power Authority.
The Minister is taking steps to engage the Ministry of Finance and Bank of Ghana to redenominate all dollar-denominated fees into cedis to address the issue.
The Chairman of the Public Accounts Committee has also warned public and private institutions to cease transacting in dollars, as it is illegal.
