Finance Minister Dr. Cassiel Ato Forson has revealed that the current administration inherited a severely distressed energy sector with annual financial shortfalls exceeding $1.5 billion.
Presenting the 2025 Mid-Year Budget Statement to Parliament, Dr. Forson described the sector as “bleeding” when the Mahama government assumed office, citing deep-rooted structural inefficiencies and unsustainable financial commitments.
“We inherited a bleeding energy sector with annual financing shortfalls in excess of $1.5 billion,” he said.
Dr. Forson explained that the deficits were driven by a mix of legacy debts, unfavorable Power Purchase Agreements (PPAs), poor revenue collection practices, and inflated operational costs within the power supply chain.
These problems, he noted, not only strained the national budget but also posed major risks to energy security and economic recovery.
To address the crisis, the Finance Minister said the government has launched several reforms aimed at restoring financial health and efficiency to the energy sector. These include:
- Renegotiation of expensive and unbalanced PPAs
- Reduction of excess power capacity charges
- Governance reviews to enhance transparency and accountability
Dr. Forson assured Parliament that the Mahama administration remains committed to transforming the sector into a sustainable, reliable pillar of national development.
