Dumsor persistent due to money owed IPP’s by gov’t; IPP’s are “afraid to talk” –  Mahama Ayariga

Member of Parliament (MP) for Bawku Central, Mahama Ayariga, pointed fingers at the government’s outstanding debts to Independent Power Producers (IPPs) as a significant factor contributing to the ongoing power challenges in Ghana, commonly known as dumsor.

Ayariga highlighted that despite the financial strains faced by these IPPs, they refrain from speaking out due to a reluctance to be drawn into political discourse.

He emphasised, “They just do not have the money to pay, the IPPs are not talking because they do not want to get involved in politics so they don’t talk.”

He expressed scepticism regarding the Akufo-Addo/Bawumia administration’s ability to effectively address the country’s economic issues, particularly criticising their handling of funds from the Energy Sector Levy Act (ESLA) aimed at addressing energy sector debts.

Ayariga praised the strategic thinking behind ESLA, established during the tenure of former president John Dramani Mahama, but criticised the current government’s mismanagement of the accrued funds.

He alleged that misrepresentations led to blaming former president Mahama for dumsor.

ESLA Plc, created as an independent Special Purpose Vehicle (SPV) to manage energy sector debt, has reportedly generated around GHS 10 billion since its inception.

“Seven years down the line where there is no demonstrated problem of lack of national generation capacity. There is internally a capacity to generate as much energy as we need. The problem is that because you have mismanaged the finances of this country, you have squandered the monies kept in the Energy Sector Levy accounts,” he said, adding that “the truth of the matter is that some of the [power] producers have it to their limits.”

Ayariga emphasized the financial strain faced by IPPs in ensuring uninterrupted power supply for Ghanaians, noting that some producers are operating at their limits due to extensive borrowing.

Former deputy minister for energy and MP for Yapei-Kusawgu, John Abdulai Jinapor, echoed similar sentiments, stating that the government requires approximately 50 million US dollars for fuel purchases to alleviate the current erratic power supply issues.

He reiterated that dumsor is fundamentally a financial challenge.