Ghana’s ongoing power crisis—popularly known as dumsor—continues to disrupt homes, businesses, and essential services. This persistent issue
Ghana’s ongoing power crisis—popularly known as dumsor—continues to disrupt homes, businesses, and essential services. This persistent issue raises a pressing question: Why does Ghana still experience power outages despite the collection of numerous taxes and levies supposedly earmarked to address the problem?
The answer lies in a complex web of financial instability, mismanagement, structural inefficiencies, and policy shortcomings in the country’s energy sector.
1. Debt and Financial Instability
The financial health of Ghana’s power sector is in critical condition. Key players like the Electricity Company of Ghana (ECG) owe billions to Independent Power Producers (IPPs) and fuel suppliers. While tax revenues are collected, including levies like the Energy Sector Levies Act (ESLA), they are often insufficient to bridge the huge funding gaps created by inefficient operations and accumulated debts.
Subsidised electricity tariffs, combined with poor revenue collection and delays in government payments, worsen the financial viability of the sector.
2. Distribution Inefficiencies
Even when power is generated, it often doesn’t reach consumers reliably. The ECG suffers from both technical losses (due to outdated transformers and lines) and commercial losses (from illegal connections and billing issues). These inefficiencies result in power cuts, load shedding, and general instability in the supply.
3. Fuel Supply and Overreliance on Thermal Plants
Ghana’s thermal plants—crucial to the country’s generation mix—depend heavily on natural gas and crude oil. Unfortunately, inconsistent fuel supply from Nigeria and domestic logistical issues frequently interrupt generation. When fuel is unavailable or unaffordable, plants cannot run, leading to outages.
4. Political Interference and Poor Planning
Energy sector management in Ghana often reflects short-term political interests rather than long-term national goals. Ill-considered contracts, delays in critical infrastructure projects, and interference in tariff adjustments have all contributed to an unstable sector. Frequent changes in leadership and a lack of continuity in policy execution also hurt the system’s resilience.
5. Corruption and Misuse of Funds
Despite years of tax revenue collection, corruption and mismanagement continue to plague energy projects. Some power deals—such as the AMERI and Karpower agreements—have come under scrutiny for inflated costs and lack of transparency. Funds meant for development are often diverted or poorly utilised, leaving infrastructure projects incomplete or dysfunctional.
6. Lag in Renewable Energy Investment
Although Ghana has significant potential for solar and wind energy, the country’s energy policy has been slow to embrace this opportunity. Bureaucratic bottlenecks, investor uncertainty, and lack of incentives have all contributed to the slow rollout of renewable solutions that could diversify and stabilise the power mix.
The Way Forward
To address these persistent outages, Ghana needs:
*Financial restructuring of the power sector, especially ECG.
*Clear accountability mechanisms for the use of energy levies and taxes.
*Independent regulation free from political interference.
*Aggressive investment in renewables and decentralised power systems.
*Public-private partnerships to improve efficiency and reduce losses.
Conclusion
Ghanaians are not suffering from a lack of taxes or policy intentions, but from a failure of execution, accountability, and sustainable planning. Until these structural issues are addressed, power outages will remain a painful reminder of the gap between governance and development.
By Boaitey Kwasi Dickson
Juaben constituency Youth Organiser, NPP
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