The New Patriotic Party (NPP) Policy Committee on Energy has expressed concern over the World Bank’s downgrade of Ghana’s Energy Sector Recovery Programme, warning that the country’s energy debt continues to worsen despite increased levies on petroleum products.
Speaking at a press conference on Wednesday August 5, the committee said the downgrade from “Moderately Satisfactory” to “Unsatisfactory” should serve as a wake-up call for government.
According to the committee, the World Bank cited stalled reforms, delayed procurement and weak governance as key reasons for the downgrade.
The NPP also pointed to rising financial losses in the power sector, claiming that combined losses by the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo) had increased from US$1.257 billion in 2022 to US$1.517 billion by May 2026.
The committee questioned why energy sector debts continue to rise despite government’s justification for introducing additional fuel levies to retire outstanding obligations.
It argued that the deterioration in the recovery programme suggests that current policies are failing to achieve their intended objectives.
“The government will need to account properly for this levy and what it has used it for,” the committee stated.
The NPP warned that continued accumulation of debt could threaten the long-term sustainability of Ghana’s power sector if reforms are not implemented urgently.
It called for greater transparency in the management of energy sector finances, including regular publication of petroleum price build-ups, levy collections and debt repayment schedules.
The committee further urged government to adopt a rules-based framework for fuel price interventions to avoid creating new fiscal pressures while addressing the concerns of consumers.
CREDIT: MAVIS FANTEVI