As public anxiety grows over Ghana’s energy security and the ballooning debt in the power sector, the Ministry of Energy has assured citizens that immediate steps are being taken to stabilize the situation and prevent potential power outages.

In an interview with Starr FM, the Ministry’s Head of Communications, Richmond Rockson, provided a detailed update on the challenges confronting the sector and measures currently underway to mitigate them.

Mr. Rockson revealed that 450,000 barrels of Light Cycle Oil have already been procured, with additional shipments expected, to cushion the impact of recent fuel shortages and ensure continued power generation.

“Some procurement has already been made, and we are expecting to receive even more. So, there’s no need for panic—measures have indeed been put in place,” Rockson said.

Despite these interventions, he acknowledged the severe financial distress within the energy sector, highlighting that the Electricity Company of Ghana (ECG) faces monthly revenue shortfalls of about GH₵2 billion, amounting to nearly GH₵30 billion annually. This shortfall, known as “under-recovery,” reflects the gap between the cost of producing electricity and the revenue ECG collects from consumers.

“It’s true that we’re facing serious challenges, including a debt of about $3 billion. Under-recovery remains a key issue bleeding the sector financially,” he explained.

Rockson pointed to inefficiencies in the current system, particularly in the tariff structure, as a major cause of the problem. He emphasized that the cost of fuel—critical to power generation—is not fully captured in the tariffs consumers pay. This forces the government to subsidize the difference, placing an unsustainable burden on the national budget.

“One major challenge is that the fuel component is not factored into the tariff structure. As a result, the government must constantly intervene financially to maintain power supply—a model that is clearly unsustainable,” he noted.

While short-term measures are being implemented to ensure stable electricity supply, Rockson stressed the need for comprehensive, long-term reforms. He called for structural changes to address inefficiencies, improve revenue collection, and reduce the sector’s dependence on government bailouts.

“The government remains committed to ensuring efficient and stable power delivery. But the long-term solution lies in fixing the fundamental inefficiencies—especially under-recovery and the rising debt. Without resolving these, we cannot build a reliable and sustainable energy sector,” he concluded.