{"id":273896,"date":"2025-11-20T16:48:07","date_gmt":"2025-11-20T16:48:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/273896\/"},"modified":"2025-11-20T16:48:07","modified_gmt":"2025-11-20T16:48:07","slug":"renegotiated-ppas-not-a-triumph-energy-expert-says-savings-mask-old-problems","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/273896\/","title":{"rendered":"Renegotiated PPAs not a triumph\u2014Energy Expert says savings mask old problems"},"content":{"rendered":"

Energy analyst Kwadwo Poku<\/a> says government\u2019s projected US$250 million savings from renegotiated PPAs should not be celebrated as a major achievement, arguing that the situation reflects long-standing energy sector mismanagement stretching back more than 15 years.<\/p>\n

Speaking on the Asaase Breakfast Show<\/a> on Thursday (20 November), Poku said Ghana should never have reached a point where renegotiations became necessary.<\/p>\n

\u201cYou sign agreements with private investors with the expectation that you can pay them,\u201d he said. \u201cIf you can\u2019t pay and must renegotiate, it shows deep structural problems. This shouldn\u2019t be praised as success.\u201d<\/p>\n

ECG Efficiency, not cash waterfall, is driving the gains<\/p>\n

Poku challenged recent claims that the cash waterfall mechanism is responsible for ECG\u2019s improved revenue flow.<\/p>\n

\u201cThe cash waterfall only works if ECG collects the money in the first place,\u201d he said. \u201cIt distributes what comes in\u2014it doesn\u2019t generate the revenue. ECG\u2019s improved mobilization is what made the numbers rise, not the mechanism itself.\u201d<\/p>\n

He said the public must understand that the mechanism is a \u201csprinkler system\u201d\u2014useful only when the inflow is strong.<\/p>\n

A history of debt accumulation<\/p>\n

Poku said Ghana\u2019s energy debt crisis predates recent governments, arguing that the issues trace back at least 15 years.<\/p>\n

\u201cThe indebtedness has always been there,\u201d he said. \u201cWhat we must avoid going forward is repeating the same cycle\u2014building debts and renegotiating out of them.\u201d<\/p>\n

Post-IMF future requires discipline<\/p>\n

With Ghana expected to exit its IMF programme in 2026, Poku warned that the sector must adopt strict financial discipline.<\/p>\n

\u201cWhen we exit IMF, our budgets must prioritise debt reduction,\u201d he said. \u201cIf we return to heavy borrowing and loose spending, the energy sector will fall back into crisis.\u201d<\/p>\n

He added that the bright spots in the budget must be backed by credible long-term policies, \u201cnot short-term fixes.\u201d<\/p>\n

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