Gov’t inherited $1.5bn energy sector deficit – Finance Minister

Finance Minister Dr. Cassiel Ato Forson has disclosed that the government inherited a deeply distressed energy sector, burdened by annual financing shortfalls exceeding \$1.5 billion.

Presenting the 2025 Mid-Year Budget Review to Parliament on Thursday, July 24, Dr. Forson described the situation as dire, blaming it on long-standing financial gaps and structural inefficiencies.

“We inherited a bleeding energy sector with annual financing shortfalls in excess of \$1.5 billion,” he told Members of Parliament.

He attributed the sector’s financial woes to several factors, including legacy debts, poorly structured Power Purchase Agreements (PPAs), inefficiencies in revenue collection, and high operational costs along the power value chain.

These issues, he stressed, pose a significant threat to Ghana’s energy security and broader economic recovery efforts.

Dr. Forson noted that the current administration has since introduced a series of reforms to tackle these challenges.

Key among them are the renegotiation of PPAs, reduction in excess capacity charges, and governance reforms aimed at improving transparency and efficiency.

He assured the House that the Mahama government is committed to transforming the energy sector into a sustainable pillar of national development.