Energy Sector Recovery Programme saves Ghana $300m in 2021
Last year, the government saved $300 million in credit accruing to energy sector utilities. The credit resulted from government’s arrangements as part of the Energy Sector Recovery Programme (ESRP) to share tariff revenues among players in the electricity value chain on a weekly basis to improve sector liquidity.
Government created the ESRP to address ongoing and projected financial shortfalls in the power and gas sectors over a five-year implementation period that began in 2019 and has now been extended by two years.
The Natural Gas Clearinghouse (NGC), founded under the ESRP, ensures a weekly distribution of tariff revenues among actors in the electricity value chain, which includes natural gas suppliers, transmitters, off-takers, and distributors from both the public and private sectors.
As part of the ESRP’s second Gas Accountants’ Business Summit, accounting professionals discussed their role in ensuring the sector’s financial stability. The two-day workshop was on the theme: “The Role of Natural Gas on Ghana’s Sustainable Future”.
The conference gathered energy experts across the spectrum, including policy makers, technical officers, gas business experts, lawyers and accountants, to discuss how they could contribute to ensuring the sector’s financial viability.
Speakers at the summit were Dr Ben K. D. Asante, CEO of Ghana Gas; Moses Okley, General Manager of Financial Planning at ECG; Isaac Akesseh, independent accountant for the Cash Waterfall Mechanism (CWM); Hamis Ussif, General Manager of Gas Business at the Ghana National Petroleum Corporation (GNPC); and Kurt Reuman; an energy consultant.
Leonard Akuffo-Kwapong, Lead Accountant of the NGC, at the workshop said, “In 2021 alone, we reconciled over $300 million, which will go back to the government as credit.”
The NGC agreement also ensures the fair and efficient distribution of gas sector revenues to all sector participants.
He stated that without any additional payments from the government, the intervention had allowed the ESRP to substantially decrease the existing legacy debt.
“What we did was simply to track payments made by the government over the period and effect accounting entries through the gas-to-power value chain, and eventually giving the government its credit.”
In his remarks, he reminded participants of their special role and urged them to emphasize sustainability reporting and its contribution to improving financial viability.
Source: Energy Ghana