Business
ECG Debt Cleared, GH¢500m Credit Outstanding — Energy Minister
The government has a credit balance of GH¢ 500 million with the Electricity Company of Ghana (ECG).
This was after the government settled all of its indebtedness to the ECG, including the GH¢ 2.63 billion it inherited on assumption of office.The Minister of Energy, Mr John-Peter Amewu, who made this known, said the credit balance was more than enough to settle all government bills from January to April 2020.
Speaking at the bi-weekly press briefing on the national COVID-19 situation in Accra yesterday, Mr Amewu said the President Nana Addo Dankwa Akufo-Addo administration made efforts to be current with payment of bills to the ECG, culminating in the payment of GH¢ 2 billion every year with an average monthly payment of GH¢ 100 million.
“It is a fact that on assumption of office, this administration was confronted with a huge indebtedness to the ECG. As of December 2016 the state owed ECG GH¢ 2.63 billion. Government ensured it was current on all bills incurred from 2017.
“At the end of 2019, all government bills with ECG had been paid and government had a credit balance of GH¢ 500 million with ECG and that was more than enough to settle government bills to ECG from January to April 2020,” he said.
Furthermore he stated: “It is also interesting to note that an un-reconciled additional payment of GH¢ 4.14 billion has also been made to various small suppliers of power producers which is yet to be credited to government under the ongoing Power Reconciliation Exercise.”
Mr Amewu said when the Power Reconciliation Exercise was completed, the government would be in a comfortable position to inform viable consumers of electricity that the energy sector was gradually moving out of debt.
He said the payments formed part of the government’s efforts to address the woes of the sector and it was clear that the government had demonstrated its commitment to addressing the financial challenges of the sector.
Power subsidy
The Minister said the government had also made some payment to the ECG under the COVID-19 power subsidy policy.
He announced that the provision of the subsidies was ongoing throughout the country “and customers have demonstrated and testified that the power relief is actually real.”
Background
In his sixth address to the nation on COVID-19 response, President Akufo-Addo announced a ¢1 billion power relief package for Ghanaians.
“We’ve decided on further measures of mitigation for all Ghanaians for the next three months, that is, April, May and June. Government will fully absorb electricity bills for the poorest of the poor, i.e for all consumers. That is free electricity for persons who consume from 0-50 kilowatt-hours a month for this period,” the President told the nation.
In addition, President Akufo-Addo said the government would also absorb 50 per cent of electricity bills for consumers in residential areas as well as those engaged in commercial activities during the period using their March 2020 bill as the benchmark.
He said the decision was part of additional measures being taken by the government to mitigate the impact the outbreak of the virus was having on the public.
Source: Daily Graphic
As part of efforts of ameliorate the hardship on Ghanaian businesses, the government of Ghana has earmarked GH¢600 million to assist businesses.
However, analysts and groups including the Trades Union Congress (TUC) and the Ghana National Union of Traders Association (GUTA) have said the amount is not enough to support the businesses.
But Mr Ofori Atta indicated that the Akufo-Addo administration is committed to ensuring that SMEs remain vibrant in order to create jobs for Ghanaians during the period of the coronavirus pandemic.
He said, this commitment is seen in the earmarked GH¢600million for SMEs to ensure they remain in business in spite of the impact of the COVID-19.
He was speaking at the launch of the coronavirus alleviation programme business support scheme, at the seat of government, the Jubilee House in Accra on Tuesday May 19.
He said the “government is committed to ensuring that SMEs remain vibrant and continue to create jobs for the people of Ghana during this period.”
He added GH¢600million can go a long way in creating the Ghanaian enterprise.
Robert Ahomka Lindsey, a Deputy Minister of Trade and Industry said the coronavirus alleviation programme is a key intervention to address the challenges facing Ghanaian businesses following the covid-19 pandemic.
The programme will focus on the Pharmaceutical, manufacturing, tourism, water and sanitation, education including private, sectors.
“The programme will be rolled out nationwide,” he said.
“At the end of 2019, all government bills with ECG had been paid and government had a credit balance of GH¢ 500 million with ECG and that was more than enough to settle government bills to ECG from January to April 2020,” he said.
Furthermore he stated: “It is also interesting to note that an un-reconciled additional payment of GH¢ 4.14 billion has also been made to various small suppliers of power producers which is yet to be credited to government under the ongoing Power Reconciliation Exercise.”
Mr Amewu said when the Power Reconciliation Exercise was completed, the government would be in a comfortable position to inform viable consumers of electricity that the energy sector was gradually moving out of debt.
He said the payments formed part of the government’s efforts to address the woes of the sector and it was clear that the government had demonstrated its commitment to addressing the financial challenges of the sector.
Power subsidy
The Minister said the government had also made some payment to the ECG under the COVID-19 power subsidy policy.
He announced that the provision of the subsidies was ongoing throughout the country “and customers have demonstrated and testified that the power relief is actually real.”
Background
In his sixth address to the nation on COVID-19 response, President Akufo-Addo announced a ¢1 billion power relief package for Ghanaians.
“We’ve decided on further measures of mitigation for all Ghanaians for the next three months, that is, April, May and June. Government will fully absorb electricity bills for the poorest of the poor, i.e for all consumers. That is free electricity for persons who consume from 0-50 kilowatt-hours a month for this period,” the President told the nation.
In addition, President Akufo-Addo said the government would also absorb 50 per cent of electricity bills for consumers in residential areas as well as those engaged in commercial activities during the period using their March 2020 bill as the benchmark.
He said the decision was part of additional measures being taken by the government to mitigate the impact the outbreak of the virus was having on the public.
Source: Daily Graphic
GH¢600 million stimulus package a good start – Finance Minister "Ken Ofori-Atta"
Minister of Finance, Ken Ofori-Atta, has said the GH¢600 million stimulus package is a good start to assist Small and Medium Scale Enterprises (SMES) in Ghana following the COVID-19 pandemic.
As part of efforts of ameliorate the hardship on Ghanaian businesses, the government of Ghana has earmarked GH¢600 million to assist businesses.
However, analysts and groups including the Trades Union Congress (TUC) and the Ghana National Union of Traders Association (GUTA) have said the amount is not enough to support the businesses.
But Mr Ofori Atta indicated that the Akufo-Addo administration is committed to ensuring that SMEs remain vibrant in order to create jobs for Ghanaians during the period of the coronavirus pandemic.
He said, this commitment is seen in the earmarked GH¢600million for SMEs to ensure they remain in business in spite of the impact of the COVID-19.
He was speaking at the launch of the coronavirus alleviation programme business support scheme, at the seat of government, the Jubilee House in Accra on Tuesday May 19.
He said the “government is committed to ensuring that SMEs remain vibrant and continue to create jobs for the people of Ghana during this period.”
He added GH¢600million can go a long way in creating the Ghanaian enterprise.
Robert Ahomka Lindsey, a Deputy Minister of Trade and Industry said the coronavirus alleviation programme is a key intervention to address the challenges facing Ghanaian businesses following the covid-19 pandemic.
The programme will focus on the Pharmaceutical, manufacturing, tourism, water and sanitation, education including private, sectors.
“The programme will be rolled out nationwide,” he said.
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