The Member of Parliament for Akyem Oda in the Eastern Region, Alexander Akwasi Acquah, has stirred debate over Ghana’s energy sector after raising concerns about the origins of Independent Power Producer (IPP) contracts currently in operation.
He has asserted that many of the IPP agreements may have been signed under previous administrations of the National Democratic Congress (NDC), and questioned whether those decisions are contributing to the financial and operational strain facing the sector today.
He argued that legacy agreements—particularly those structured on “take-or-pay” terms—could be at the heart of mounting debts owed to power producers, as well as ongoing technical and supply challenges.
“Is it true that most of the IPP contracts to generate power were signed by our friends in the NDC?” he queried. “Could it be the reason why they (IPPs) are suffering but cannot talk?”
His remarks come at a time when the country’s energy sector continues to grapple with significant financial pressures.
Industry observers have long pointed to the burden of capacity payments and delayed government obligations as key factors affecting the sustainability of IPP operations.
Some critics have gone further, describing certain agreements signed during past administrations as unfavorable to the state, arguing that they have contributed to high electricity tariffs and constrained industrial growth.
However, such claims remain part of an ongoing political and policy debate.
As of early 2026, government indebtedness to IPPs is estimated to run into billions of dollars, with some power producers reportedly warning of possible supply curtailments if payment obligations are not met.
These concerns have revived fears of a return to erratic power supply, commonly referred to as “dumsor,” which some analysts say the country continues to experience despite government efforts to service the energy debt.
While the Minority in Parliament has criticized the current administration’s handling of the sector, the latest comments by the Akyem Oda MP shift attention to the long-term impact of decisions taken by previous NDC administrations.
Despite the criticism, IPPs have played a crucial role in stabilizing Ghana’s electricity supply over the years, particularly during periods of generation shortfalls.
Their contribution has been central to efforts to reduce the frequency and severity of power outages.
Nonetheless, the sector continues to face persistent challenges, including excess generation capacity, high operational costs, and contractual obligations that have sparked sustained public scrutiny.
The NDC is yet to respond to the claims, but the issue is expected to fuel renewed discussions on energy sector reforms and the renegotiation of existing power agreements.
By 1960news.com
