Director of Communications for the opposition New Patriotic Party (NPP), Richard Ahiagbah has attributed the recent financial losses of the Electricity Company of Ghana (ECG) to what he describes as “egregious” inefficiencies and unfavorable power purchase agreements (PPAs) signed by the previous National Democratic Congress (NDC) government.
Speaking on JoyNews’ Newsfile, Ahiagbah criticised the NDC for entering into agreements that obligated the state to provide fuel to Independent Power Producers (IPPs) without cost recovery mechanisms, a decision he labeled as “sinful” and economically damaging.
Mr Ahiagbah expressed bewilderment over the terms of the PPAs, stating, “I have not come to settle in my mind why we signed power purchase agreements where we agree to provide fuel for IPPs without recovering the cost. They just bill us, and we pay.”
He referenced World Bank critiques, which reportedly described such contracts as “expensive and wrong.”
The NPP communicator argued that these agreements have contributed significantly to ECG’s financial struggles, alongside operational inefficiencies within the power distributor.
“There are leakages in the system, and ECG must ensure consumers pay for the power they use,” he added.
When questioned why the NPP government, during its eight years in power, did not renegotiate or terminate these contracts, Ahiagbah defended his party’s record, suggesting that solving inherited problems is complex.
“You can be pardoned if you inherit a bad problem and couldn’t solve it. The person who created it should be held accountable,” he stated.
In 2021, the ECG suffered a GH¢10.21 billion loss in 2022, worse than the GH¢1.91 billion.
However, he called for a holistic review of Ghana’s power sector agreements, urging stakeholders to engage in constructive dialogue to address the financial burden on the state.
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