Review of the mid-year budget: the deterioration of the situation of power plants … agreements to cancel? | Policy

Leader of the majority of Parliament, the Hon. Osei Kyei Mensah Bonsu made it clear that the mid-term budget review of Finance Minister Ken Ofori-Atta would address the subject of the revocation of the many power purchase agreements entered into by the Mahama government.

He explained that the introduction of Power Plant by the former government of President Mahama as a means of resuscitating the popular irregular diet called dumsor has become cancerous, deeply damaging to the country's economy; therefore, the agreements need to be reconsidered as they drain the public purse.

Speaking at the morning show Ade Akye Abia of Okay FM, the Minister of Parliamentary Affairs insisted that because of the electricity purchase agreements, the The country now produces nearly 4,600 megawatts, while its peak demand is around 2,600 megawatts.

"One of the things that aggravates the economy of the country is the introduction of a power plant by the Mahama administration while the country was fed by mbadive irregular energy sources. .. now we have spent a lot of electricity purchase contracts because of the discomfort felt by the country. The power generation capacity and power station in this country has reached nearly 4,600 megawatts, "he said.

"… the maximum electricity demand is 2600 megawatts and even with the 2600 megawatts, because of our inefficiency in the system and the wires on the pylons and wires to the various residences are old, we have to change … We should have changed these cables 6 or 7 years ago, but we have not been able to change them because the government and ECG have to VRA; the system is messy and what I mean is that even with the maximum demand of 2600 megawatts of power, if you look closely at the situation, when we produce 2,600 megawatts, about 400 to 500 megawatts of power are lost in the system and through inefficiency, "he added.

He pointed out that instead of the 2600 megawatts needed in the country, about 2100 to 2200 megawatts are generated because of the inefficiency of the system. Meanwhile, the agreement is such that the country pays for the surplus, because the surplus is not necessary.

"That means the country needs exactly 2100 to 2200 megawatts in peak periods. Meanwhile, the storage capacity is 4600 and we have an agreement with the companies called "Take or Pay" and, therefore, after generating electricity, whether you do it or not, you will pay for electricity, "he said.

"It affects the country a lot because we pay huge amounts of money when we do not use electricity. Even with the excess electricity produced, because of its high cost, we can not sell it to third parties. The thermal power stations in the sub-region also produce electricity and the price is cheaper than ours in Ghana, which has repercussions on the country's economy, "he repeated.

He however revealed that the government was working in the direction of a certain direction to solve this problem. the finance minister should therefore tackle the problem of wasting money by producing an excess of megawatts of energy that the country does not need.

"Should we cancel some agreements? If we cancel the agreements, what will be the consequences for the country? In the mid-year review, the finance minister has to tell us something, "he said.