President John Dramani Mahama has revealed that the government has achieved immediate savings of US$250 million after renegotiating power purchase agreements with nine independent power producers.
Speaking during the State of the Nation Address, the President noted that US$1.1 billion in legacy energy debt has been restructured for repayment between 2026 and 2028, easing the financial burden on the electricity sector.
He outlined that the revised agreements would be submitted to Cabinet and subsequently to Parliament for ratification, reinforcing transparency and oversight in the process.
President Mahama explained that a cash waterfall mechanism has been strengthened through operationalisation of the Electricity Company of Ghana’s single holding accounts, jointly overseen by the Ministry of Energy and Green Transition and the Public Utilities Regulatory Commission, reducing revenue leakages and enhancing ECG’s ability to meet payment obligations.
The President also announced Cabinet’s approval of the multiple lease method for concessions in distribution utilities, emphasizing that private sector involvement, particularly in billing and collection, is critical to reducing power losses, which currently stand at around 25 percent of generated electricity.
This initiative underscores the government’s commitment to reforming the power sector, improving efficiency, and lowering costs for consumers across Ghana.
