The Minority in Parliament has taken issues with the government’s position that the country has excess power, causing the termination of some contracts.
The Finance Minister, Ken Ofori-Atta, in his presentation of the mid-year budget review to Parliament Monday, noted that the country is paying for power that it doesn’t need.
This, he said, caused them to terminate some Liquefied Natural Gas (LNG) contracts in 2017 to save the taxpayer some cash.
“Currently, according to the Energy Commission, our installed capacity of 5,083 MW is almost double our peak demand of around 2,700 MW. Notably, 2,300 MW of the installed capacity has been contracted on a take-or-pay basis. This means that we are contractually obliged to throw away money for this excess capacity which we do not consume. This has resulted in us paying over half a billion U.S. dollars or over GHS 2.5 billion annually for power generation capacity that we do not need.