Minister of Energy and Green Transition, John Abdulai Jinapor

Minister of Energy and Green Transition, John Abdulai Jinapor, has disclosed that Ghana Water Limited has failed to pay the Electricity Company of Ghana (ECG) for power consumed over the past seven months, resulting in an accumulated debt of approximately GH¢1 billion.

This revelation was made during a meeting with Parliament’s Energy Committee and key stakeholders in the power sector, where the Minister directed ECG to urgently recover the outstanding amount to sustain operations amid growing financial stress in the sector.

“Ghana Water hasn’t paid even GH¢1 for seven months, and it has compounded to GH¢1 billion. The power sector will not be stable if such debts continue. The private sector or ordinary citizens alone cannot shoulder this burden,” Jinapor stated.

He made these comments while responding to complaints from Ghana Water Limited about erratic electricity supply affecting water distribution.

In a related development, the Minister revealed that Karpower, one of Ghana’s key Independent Power Producers (IPPs), has issued a notice of shutdown effective May 18, citing over $400 million in unpaid government debt.

“Karpower has just sent us a letter that by the 18th, they will shut down the plant because we owe them more than $400 million. In total, we owe IPPs about $1.7 billion,” Jinapor added.

These revelations come as Ghana’s energy sector grapples with a deepening liquidity crisis, exacerbated by underreported revenues, ballooning government arrears, and delays in implementing cost-reflective tariffs.

The minister stressed the urgency of improving revenue recovery, warning that failure to act would further destabilize power generation and supply nationwide.