Finance Minister Dr. Cassiel Ato Forson has revealed that the current administration inherited a deeply troubled energy sector, grappling with annual financing shortfalls exceeding $1.5 billion.
Presenting the 2025 Mid-Year Budget Review to Parliament on Thursday, July 24, Dr. Forson described the sector as "bleeding" at the time of the government’s assumption of office, citing a legacy of unsustainable debt, poorly structured power purchase agreements, and operational inefficiencies.
“We inherited a bleeding energy sector with annual financing shortfalls over $1.5 billion,” he told the House.
The Finance Minister explained that the substantial funding gap had led to mounting arrears and chronic payment delays across the energy value chain, which in turn eroded investor confidence and placed additional strain on the national budget.
He stressed the urgency of reforming the sector to ensure its financial viability and improve the reliability of power supply.
As part of ongoing efforts to address these challenges, Dr. Forson announced that the government has begun renegotiating existing power purchase agreements and enhancing revenue mobilization within the sector.
He assured Parliament of the administration’s commitment to restoring fiscal discipline, promoting accountability, and building a sustainable energy future for the country.
