GHS1 Billion for Covid-19 Electricity Reliefs Won’t Affect Energy Sector Debt – Nana Damoah

Head of Communication at Ghana’s Energy Ministry, Nana Damoah says the electricity reliefs introduced by government to cushion citizens amid the Covid-19 pandemic will not affect the country’s energy sector debt.

According to Mr Damoah, government has funds ready to pay suppliers of electricity monthly.

President Nana Akufo-Addo in an address to the nation on Thursday, April 9, 2020, announced that government will cover the electricity bills of Ghanaians for three months, however in stipulated percentages.

According to John Peter Amewu, Minister for Energy, government will spend a little over GHS1 billion on the electricity relief package for all Ghanaians as announced by the President.

Some stakeholders within the sector have claimed that the reliefs will likely impact the country’s already high energy sector debt.

But speaking in an interview with Accra based Citi FM, the spokesperson for the Energy Ministry insisted that the current arrangement will not affect the Energy Sector debt as plans are underway by government to shield the costs.

“This will not in any way affect the current position of the energy sector in terms of debt because government, led by the President, made a decision to provide some relief to the people of Ghana in this era of COVID-19. What this means is that this cost or this debt we are about to incur has been planned for by government and government will provide those amounts of money from outside the normal operations of the electricity company of Ghana. So government has said these amounts that have been brought before it are going to be paid on a monthly basis. It, therefore, does not affect the revenue of the ECG in any way”.

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“The Ministry of Finance has given the highest assurances that the money has been found and is available to be paid at the end of every month to ensure the continuous operation of all of these” he added.

It is believed that Ghana’s Energy sector debt currently stands at GHS15 billion.