Government and Politics

Akufo-Addo government met a problematic energy sector – Deputy Energy Minister


Deputy Minister of Energy in charge of Finance and Infrastructure, Joseph Cudjoe, has stated that the current crisis the Akufo-Addo government is battling with in the energy sector is as a result of the mess former President Mahama and his administration created.

The minister averred that former president Mahama employed the ‘take or pay’ method of signing contracts which in turn adversely affected the economy negatively.

He continued that with this ‘take or pay’ system, whether or not Ghanaians utilise power allocated to them, they still would have to settle the cost presented to them.

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Speaking at the Ghana Renewable Energy Fair in Accra on the theme, ‘Ghana Beyond Aid: Overcoming Financial Challenges’, he indicated that, “we met a situation which was problematic…so many signed power purchase agreements when it comes to the power sector. From conventional power to renewable power purchase agreement…that were costly”.

According to him, “the only way the previous government could deal with its own problem was to keep adjusting electricity prices upwards so that revenue will be higher than that cost,” he added.

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He further stated that despite government facing energy crisis, it has been able to cut down industry tariffs by 30%, commercial entity tariff by 20% whiles residential getting a tariff cut by 15%.

The Deputy Energy Minister added that this government took the risk by cutting down power to 70% and only adjusted it by 11% on the 70% which is 81%, adding that it is “better than the 100% they met three years ago”.

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Joseph Cudjoe explained that it is for this reason that the Akufo-Addo government has introduced a ‘take and pay’ system so that individuals could pay for the electricity at their own peril.


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