Ben Boakye, the Executive Director of the Africa Centre for Energy Policy (ACEP), has called on Ghana’s Finance Minister, Ken Ofori-Atta, to address the pressing issues within the energy sector during the 2023 Mid-Year Budget Review.
Mr Boakye’s urgent plea emphasizes the need for coordinated efforts among stakeholders in the energy sector to confront the current power crisis with optimum efficiency and informed decision-making.
He stresses the imperative of stringent regulation for various government agencies in the power sector to eradicate inefficiencies and commercial losses that have plagued the energy sector.
Mr Boakye speaking during NorvanReports’ Twitter Space Townhall Discussion on the topic “2023 Mid-Year Budget: Concerns and Expectations” on Sunday, contends that the excessive wastage within the energy sector demands prompt attention and concrete action from the Mid-Year Budget review, rather than superficial rhetoric.
Despite the implementation of close to 100% tariff adjustments in the first half of 2023, the ECG continues to grapple with revenue collection challenges, with collection rates falling below its three-year average of 50% to a meagre 11%.
Inefficiencies in revenue mobilization, coupled with other energy sector inefficiencies, are projected to result in substantial under-recoveries, estimated at GHS 23 billion by the end of 2023. The ACEP Executive Director cautions that without decisive measures to address these inefficiencies, this amount could soar to GHS 97 billion by 2026.
The energy sector is eagerly awaiting the second phase of the Energy Sector Recovery Programme (ERP) from the IMF, with anticipation from industry players, energy think tanks like ACEP, and investors. Stakeholders are keen to witness how the government, in collaboration with the International Monetary Fund (IMF), will proactively tackle the energy sector crisis and implement effective measures to enhance its efficiency.
As Ghana confronts the challenges within its energy sector, the call for urgent efficiency reforms resonates across the industry. The forthcoming Mid-Year Budget Review offers a critical opportunity to address these pressing issues and chart a path towards a more sustainable and resilient power sector for the nation.
