Ghana’s Energy Sector on the Brink: Minority Raises Alarm Over Impending Collapse

In a recent development, the minority in Parliament has expressed deep concerns about the deteriorating state of Ghana’s energy sector under the current government.

The warning comes as stakeholders, including the Senior Staff Association of the VRA, fear that without immediate action, the country’s energy sector could face a complete collapse by the end of the year.

This worrying phenomenon has been corroborated in a recent press release by the senior staff of the VRA.

Accusing fingers were pointed at government officials and some industry players by the aggrieved senior VRA staff for not only starving VRA of the needed funding, but also forming  cartels that undermine the sector, milking it dry and sinking it into severe financial distress.

“We have for a long time pointed out to this Government on its financial mismanagement and incompetence as far as the energy sector is concerned.

Unfortunately, and as usual of the Government and it’s officials, they have deliberately turned deaf ears to our sound advice, to the extent that the monumental gains chalked under the administration of H.E President John Dramani Mahama, have been eroded significantly if not completely,” the minority stated in a release on the crisis in the sector.

It added: “These stubborn and belligerent attitudes have ultimately triggered and given birth to the fresh and the avoidable DUMSOR Ghanaians are having to suffer and contend with since the beginning of 2024.”

It lashed out at the government for trying to score cheap political points with claims of  generating excess capacity – “despite the so-called excess capacity which the NPP government wanted to make a political capital out of, today, the Government is unable to maintain the export of power to neighbouring Togo, Benin, Burkina Faso and Cote D’Ivoire, and this is seriously undermining Ghana’s bilateral agreements and obligations under the ECOWAS protocols.

It is even more worrying to note that despite the critical role played by the VRA in the energy value chain, the Authority has so far received a paltry 32% of their total bill (GHS1,096,360,403.53), even under the Cash Waterfall Mechanism (CWM).

This blatant disregard for the provisions and dictates of the CWM has rendered VRA under-resourced, threatening the Authority’s long-term viability,” the release stared.

Many Ghanaians according to the release, were shocked to hear the concerns raised by the Senior Staff Association of the VRA on the attempt of some elements in Government, planning to sell the VRA’s thermal assets at such a critical time, warning of the consequence that move which will be felt by Ghanaians when the Akuffo-Addo/Bawumia cronies finally capture the energy sector.

Accusations have been raised against government officials and industry players for allegedly undermining the sector through financial mismanagement and forming cartels that exploit and drain the energy resources.

The minority also highlighted the resurgence of power outages, popularly known as “DUMSOR,” which has been a major challenge for Ghanaians since the beginning of 2024.

Moreover, the minority criticized the government’s inability to maintain power exports to neighboring countries, raising concerns about Ghana’s commitments under ECOWAS protocols.

The release also shed light on the under-resourcing of the VRA, emphasizing the critical role the Authority plays in the energy value chain.

As tensions mount, Ghanaians are urged to resist any attempts to sell off VRA’s thermal assets, with the minority calling on the government to adhere to the Cash Waterfall Mechanism (CWM) to ensure the sector’s sustainability.

The release issued a stern warning to those attempting to control the sector through illicit means, cautioning them to halt their actions or face the consequences from the Ghanaian populace in the future.