Gov’t inherited a ‘bleeding’ energy sector with $1.5 billion annual deficit – Ato Forson
Finance Minister Dr. Cassiel Ato Forson has revealed that the current administration inherited a severely distressed energy sector, burdened by annual financing shortfalls exceeding $1.5 billion.
Delivering the 2025 Mid-Year Budget Review to Parliament on Thursday, July 24, Dr. Forson attributed the crisis to a combination of unsustainable debts, poorly structured power purchase agreements (PPAs), and systemic inefficiencies across the energy value chain.
“We inherited a bleeding energy sector with annual financing shortfalls over $1.5 billion,” he stated.
The Minister explained that these financial gaps have led to accumulated arrears, delayed payments, and widespread liquidity challenges, which have not only weakened investor confidence but also placed immense strain on public finances.
Dr. Forson emphasized the urgency of reforming the sector to restore financial health and improve service delivery. He announced that the government has already begun taking corrective steps, including:
- Renegotiation of existing power purchase agreements to eliminate excessive take-or-pay obligations.
- Enhancement of revenue mobilization and collection efforts across the energy value chain.
- Improved regulatory oversight to promote efficiency and cost recovery.
“Our goal is to restore financial discipline and accountability in the energy sector while ensuring sustainable and affordable power for all Ghanaians,” he assured Parliament.
The Finance Minister underscored the importance of long-term structural reforms to prevent a recurrence of the crisis and reaffirmed the administration’s commitment to transparent and sustainable energy sector governance.
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