The Minority in Parliament has outlined three key proposals to help the government resolve Ghana’s worsening energy sector debt, which now exceeds GH¢80 billion.
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At a press conference in Accra on Monday, Kojo Oppong Nkrumah, Ranking Member on the Economy and Development Committee, urged the Mahama administration to adopt sustainable, long-term solutions rather than imposing what he called “punitive taxes” like the newly introduced 8% fuel levy.
1. Renegotiate Power Purchase Agreements
The Minority is calling on the government to expedite renegotiations of existing power purchase agreements (PPAs), particularly “take-or-pay” contracts, which they argue are unsustainable and a major cause of debt.
“The government must complete the renegotiations it claims to have started and reduce unnecessary capacity payments,” Oppong Nkrumah said.
2. Accelerate Renewable Energy Transition
They also propose a rapid shift to renewable energy sources like solar and wind to cut costs and reduce dependency on imported fuels.
“This shift will reduce operational costs and protect Ghana from global oil price volatility,” he added, highlighting the cost-efficiency and sustainability of renewables.
3. Restructure IPP Financial Agreements
The Minority wants the government to work with Independent Power Producers (IPPs) to restructure existing contracts by incorporating fuel and capacity charges directly into PPAs. This would allow the Public Utilities Regulatory Commission (PURC) to transparently factor costs into tariffs.
“This ensures fair pricing and avoids burdening citizens through indirect taxes like the fuel levy,” Nkrumah explained.
Call for Stakeholder Forum
The Minority is demanding the immediate withdrawal of the 8% fuel levy and has called on the government to convene an emergency stakeholder forum. This forum would include civil society, consumer groups, and energy sector players to reach consensus on practical, inclusive solutions to the ongoing crisis
