Energy Relief Package Won’t Worsen Energy Sector Debt – Energy Ministry

The Energy Relief Package announced by government to offer some relief to Ghanaians following the economic challenges caused by the outbreak of the novel Coronavirus will not affect the country’s energy sector debt.

That’s according to the Head of Communications at the Ministry of Energy, Nana Kofi Oppong Damoah.

Government has announced a complete waiver of electricity bill for lifeline consumers of electricity and 50 percent reduction for all other consumers using March 2020 bill as the benchmark.

But Ghana’s energy sector is said to be struggling due to a GHS15 billion debt.

“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,”he said.

“Government has said this amount is going to be paid on a monthly basis. It therefore does not affect the revenue of the ECG in any way. 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 entities,” he added.

Government to spend GHS1bn on Energy Relief Package

At a press briefing in Accra on Thursday 16th April, 2020, the Minister of Energy, Mr John Peter Amewu, disclosed that government is expected to spend approximately GHS1 billion to absorb the electricity bills of Ghanaians for April, May and June, as part of measures to offer some relief to consumers in the wake of tightened financial conditions caused by the novel Coronavirus pandemic.

The package will cover over 86 percent of individual consumers and industries on the national grid.

He said the amount would cover the electricity bills of consumers of the Electricity Company of Ghana (ECG), the Volta River Authority (VRA) and the Northern Electricity Distribution Company (NEDCo).