Gov’t clears IPP debts, boosts gas supply to strengthen power sector -Mahama

President John Dramani Mahama has announced that the government has cleared most of the outstanding debts owed to Independent Power Producers (IPPs), a move he says has helped restore stability to Ghana’s power sector and improve electricity supply across the country.

Speaking during a courtesy call by the Kwahu Business Advocacy Group at the Jubilee House, President Mahama said the government’s interventions have significantly improved the financial health of the Electricity Company of Ghana (ECG), enabling it to meet its financial obligations to power producers.

“We’ve paid down most of the debts to the Independent Power Producers, and the reforms we have carried out in ECG have raised their revenue to almost GH¢2 billion every month they are able to collect. With the monies they are collecting, they are able to pay the current bills of all the power producers,” he said.

The President noted that ECG had previously struggled with high commercial and technical losses, while mounting debts to power producers and gas suppliers threatened the country’s energy security.

He explained that the improved revenue collection has stopped the accumulation of new debts to electricity generators, helping to restore confidence in the sector and ensure a more reliable electricity supply.

President Mahama also disclosed that the government, through the Ministry of Finance, has settled outstanding payments owed to upstream gas producers operating the Jubilee and ENI Sankofa fields.

“As a result, they’ve increased the gas volume, so we’re getting more gas than we did before,” he said.

According to the President, the increased gas supply has strengthened electricity generation and supports the government’s broader efforts to deliver dependable and affordable power to households and businesses.

Mahama stressed that reliable electricity remains a critical pillar of Ghana’s economic transformation agenda, particularly as the government prepares to implement its 24-hour economy programme, which will require uninterrupted power for industries operating around the clock.

He reaffirmed the government’s commitment to sustaining reforms in the energy sector while investing in critical infrastructure to create an enabling environment for businesses to grow and drive economic development.