Finance Minister Dr. Cassiel Ato Forson has revealed that the John Mahama-led administration inherited a critically distressed energy sector burdened by massive annual financial shortfalls and long-standing inefficiencies.
Presenting the 2025 Mid-Year Budget Review to Parliament on Thursday, July 24, Dr. Forson disclosed that when the National Democratic Congress (NDC) government took office, the energy sector was grappling with annual financing gaps exceeding $1.5 billion—posing serious threats to the country’s economic stability.
“We inherited a bleeding energy sector with annual financing shortfalls in excess of $1.5 billion,” he told lawmakers.
Dr. Forson attributed the dire state of the sector to a cocktail of challenges, including ballooning legacy debts, unfavourable Power Purchase Agreements (PPAs), low revenue collection rates, and high operational inefficiencies across the entire energy value chain.
Beyond the financial impact, he said the sector’s condition was undermining national energy security and risking broader economic recovery efforts.
In response, the Minister outlined a suite of reform initiatives being rolled out by the Mahama administration to rescue the energy sector from collapse. These include the renegotiation of expensive PPAs, trimming excess capacity charges, and strengthening governance frameworks across energy institutions.
“Our goal is to fix the foundations and build a transparent, efficient, and financially viable energy sector that can support national development,” Dr. Forson stated.
He reassured Parliament that the government is not only focused on plugging fiscal leakages but is also committed to long-term structural reform aimed at turning the energy sector into a dependable engine for growth.
This signals a policy shift from crisis management to transformation—one that positions energy reform at the heart of Ghana’s economic revival strategy.
