The Minister for Energy and Green Transition, Dr. John Abdulai Jinapor, has disclosed that Ghana has increased payments to Independent Power Producers (IPPs) from 40 percent to approximately 100 percent of their bills, following reforms aimed at restoring financial stability in the electricity sector.
Speaking at the 16th Meeting of ECOWAS Ministers in Charge of Energy in Accra, Dr. Jinapor revealed that several power producers were threatening to curtail electricity generation when he assumed office because of persistent payment shortfalls.
He explained that the government subsequently introduced aggressive revenue collection measures and other policy reforms to improve the financial position of electricity utilities and ensure that power producers receive payments for electricity supplied.
The Minister acknowledged that the intensified revenue mobilisation initially attracted public dissatisfaction but maintained that the measures were necessary to prevent disruptions in electricity generation.
According to him, the government prioritised financial discipline over the immediate political consequences of enforcing payment obligations, recognising that unreliable electricity supply would have far-reaching implications for households, businesses and the economy.
Dr. Jinapor stressed that financially distressed utilities cannot sustain reliable electricity generation, warning that weak payment discipline also undermines contractual obligations and investor confidence.
He further indicated that the reforms were intended to strengthen Ghana’s capacity to meet domestic electricity demand while maintaining power exports to neighbouring countries.
The Minister urged ECOWAS member states to adopt stronger financial management practices, emphasising that the success of regional electricity integration depends largely on the financial stability and institutional credibility of individual national power systems.
