Ghana spends $92m monthly beyond tariffs to keep electricity flowing – PURC reveals

Ghana is spending an average of $92 million every month beyond electricity tariffs to maintain consistent power supply across the country, according to Dr Shaffic Suleman, Executive Secretary of the Public Utilities Regulatory Commission (PURC).

Speaking in an interview, Dr Suleman revealed that the Ministry of Finance has been making regular interventions to sustain the energy sector and prevent supply disruptions. These hidden costs underscore the significant financial burden the government shoulders to keep the national grid operational throughout the year.

The PURC boss disclosed that proceeds from the ¢1 levy on petroleum products have been instrumental in addressing long-standing sector liabilities. About ¢8 billion accumulated from this levy has been deployed strategically, including:

• Settling arrears owed to Independent Power Producers (IPPs)
• Restoring World Bank risk guarantees linked to the Sankofa Gye Nyame gas project and its partners
• Clearing accumulated debts that had damaged Ghana's credit rating
• Supporting gas suppliers including Sankofa and Jubilee operators

Dr Suleman noted that these interventions have significantly reduced the sector's debt burden and restored Ghana's credit profile. The World Bank risk guarantee restoration with ENI, in particular, has strengthened investor confidence and improved the country's international standing.

Despite the financial support, the PURC chief emphasised that maintaining stable electricity supply remains resource-intensive. The monthly $92 million subsidy reflects the true operational cost of keeping lights on beyond what consumers pay in tariffs, underscoring the structural challenges facing Ghana's power sector.