President John Dramani Mahama has highlighted significant reforms in the energy sector, including financial savings and enhanced gas payment compliance, aimed at stabilising electricity generation.
In his 2026 State of the Nation Address to Parliament, the President underscored the existing inefficiencies within the power distribution system, noting that only about 52% of energy injected into the grid was effectively collected due to substantial commercial and technical losses.
He attributed distribution-level challenges, including system constraints and revenue leakages, to the sector’s financial sustainability issues.
According to him, approximately 62% of the collected revenue was allocated towards servicing obligations to power producers and related entities, resulting in persistent liquidity constraints.
Furthermore, a recent Media and Policy Action report revealed contracts and invoices linked to the energy sector valued at around $500 million. President Mahama assured Parliament that the government has implemented corrective measures and is now current on gas consumption obligations.
“Today, we are fully current on our gas payment commitments,” he said, dismissing claims that gas supplies had been halted. According to him, the government has reached a comprehensive roadmap with partners to guarantee payment for all gas consumed going forward.
The president further revealed that the new framework is designed to facilitate dependable nationwide electricity generation while maintaining the financial sustainability of gas procurement and consumption.
He stated that scheduled increases in certain gas-related levies have been reassessed and lowered, with additional policy measures forthcoming next month, including the establishment of a gas processing and management framework under the purview of the Ministry of Energy and Green Transition.
A significant financial breakthrough was achieved, as the president disclosed that negotiations with nine Independent Power Producers (IPPs) have resulted in immediate savings of $250 million and the restructuring of approximately $1 billion in legacy debt over a 36-month payment period.
“These agreements will be submitted to Parliament for review,” he said, emphasising the government’s commitment to transparency and legislative oversight in implementing the revised energy sector arrangements.
He said that these reforms are integral to a broader national support programme aimed at enhancing efficiency, mitigating financial losses, and bolstering Ghana’s credibility with international energy partners.
He reiterated that stabilising the power sector is crucial to economic recovery, industrial growth, and investor confidence, assuring Ghanaians that the government is resolute in developing a resilient and financially sustainable energy system.
By: Rainbowradioonline.com/Ghana
