A Deputy Energy Minister, Joseph Cudjoe, has justified reasons why government reviewed some 24 power purchase agreements, which has led to the termination of 11 power deals and the rescheduling of 8 others.
The move has enabled us to save the government treasury about $7 billion in excess capacity charges over a 13-year contract period, he reiterated.
In an interview with Kwame Tutu on Rainbow Radio 87.5Fm, Mr. Cudjoe, described the agreements as ‘’bad and dubious’’ and with high capacity charges’’.
The legislator said the figure would have collapsed Ghana’s economy and wondered why a government signed such agreements.
President Nana Akufo-Addo on Wednesday at his media encounter revelaed that, that an Industrial Development Tariff has been approved for industry to enhance its competitiveness.
To this end, a new rate of US$6.50 per Million British Thermal Units (MMBtu), as against the previous rate of US$8.84 per Million British Thermal Units (MMBtu), has been established, representing a 26.5% reduction.
“In addition, a review of 24 power purchase agreements, which has led to the termination of 11 power deals and the rescheduling of 8 others, has enabled us to save the government treasury about $7 billion in excess capacity charges over a 13-year contract period,” he said.
The Deputy Minister said the action taken by government was in the ‘’best interest’’ of the state because it was serious for us to waste such an amount of money and ‘’should Mahama have won, we would have paid for the amount.
The previous administration would have also increased electricity tariffs should they have won the polls and ‘’so Ghanaians should thank God for kicking the NDC out of power.’’
Meanwhile, a former Public Relations Officer (PRO) for the Energy Ministry, Edward Bawa, has refuted the claims by the president.
In a rebuttal, he described the claims as propaganda and populist.
According to him, there has not been any significant change after the NPP took over from the NDC.