Minister of Energy, John Peter Amewu, has announced that government is taking steps to renegotiate a new power purchase agreement, the ‘take and pay’ arrangement.
The model, he told Parliament in a statement on the floor in Accra on Friday would be me cost effective.
Classifying the power purchase agreements signed under the erstwhile
John Mahama-led NDC government as ‘take or pay’, Mr Amewu
said that arrangement has not been helpful to the country because the country has been saddled with over capacity payments averaging about USD 25million monthly.
The minister said “We are engaging in renegotiating of the Power Purchase Agreements to bring these cost down to the barest minimum in the interim.”
“The issue of take or pay without considering what Ghanaians will pay is gone. Under the President’s watch, we are beginning to consider a regime of take and pay’, you cannot continue to pay for goods and services that you are not consuming, that era is gone.
“We believe that the issue of take and pay must begin to trigger down to every Ghanaian, we will continue to make sure that high excessive regime of tariffs being consulted will no longer be witnessed on any Ghanaian,” he said.
“Gas purchase agreements have been signed without considering what the benefit will be, this government has taken the trouble to negotiate the OTCP price,with the price brought down to a margin of US$2, that translates to about 50m per annum for the consuming public, the minister noted.
The minister’s statement followed some disturbances that have been experienced in the power sector resulting in the interruption of power supply to customers.
Managers of the sector, however, expalined that the disturbances were due to challenges at the newly commissioned Accra Central substation.
Speaking about those challenges, Mr Amewu indicated that they had occurred when there was already an ongoing five-day outage that has been taken on the 330kV transmission line between Tema and Aboadze for relocation of two towers on the line at the request of the Ghana Highway Authority to enable the construction of a new interchange at Pokuase.
He however assured that efforts were ongoing to stabilise the interruptions.
BY JULIUS YAO PETETSI