John Mahama, the flagbearer of the opposition National Democratic Congress (NDC), attributes Ghana’s ongoing power outages, commonly referred to as ‘dumsor’, to the government’s mismanagement of the nation’s power-generating assets and the utilization of the Energy Sector Levy Act (ESLA).
The ESLA was instituted to consolidate levies collected within the energy sector, aiming to finance power generation, support road maintenance, and address legacy debts. It also advocates for the prudent use of levy proceeds and encourages sustainable long-term investments in the energy sector.
Speaking at a gathering of the Association of Ghana Industries (AGI) in Accra on Tuesday, April 2, 2024, the former President elucidated how mishandling ESLA has contributed to the resurgence of ‘dumsor’. He emphasizes the necessity for the government to acknowledge responsibility and take action to resolve the issue.
“The country finds itself in darkness due to mismanagement of generating assets and the collateralization of ESLA, which was designated to finance existing and legacy debts. The government needs to humbly acknowledge its role in this crisis and work towards a solution. Unfortunately, that hasn’t been the case. Businesses and households are struggling to plan amidst this erratic power situation,” Mahama stated.
Mahama also criticized Energy Minister Matthew Opoku Prempeh for his recent response to public demands for a load-shedding timetable amid the power outages. The Minister’s comments, perceived as disrespectful by Mahama, prompted a call for the government to promptly address the power crisis and provide a schedule to assist citizens in managing their energy consumption amidst the supply challenges.
“Energy Minister Dr. Matthew Opoku Prempeh, formerly a prominent advocate of the ‘Dumsor must stop campaign’ while in opposition, is reported to have dismissed calls for a load-shedding timetable, suggesting those requesting it harbor ill intentions. This is deeply disrespectful to Ghanaians and electricity consumers. Stability in the macroeconomic environment is vital for businesses to thrive, and transparent measures are needed to promote local production and fiscal consolidation,” the former President emphasized.”