Minority Chief Whip Frank Annoh-Dompreh has directly challenged the administration over persistent power outages, stating that the energy crisis is destroying businesses and jobs. He warned that this situation also erodes public confidence. The Nsawam-Adoagyiri MP addressed an open letter to the President.
Annoh-Dompreh highlighted that the recurring outages, known as 'dumsor', represent a significant governance failure with severe economic consequences. He stated that despite government assurances, the reality on the ground shows a different story for Ghanaian homes and businesses. The MP stressed that businesses are struggling due to erratic power supply.
This ongoing power crisis severely impacts Ghana's economic stability and growth prospects. Data shows that a lack of reliable electricity disproportionately affects small and medium-sized enterprises (SMEs), which are crucial for employment. The situation also contradicts the government's promise of a 24-hour economy, as businesses cannot operate consistently.
Frank Annoh-Dompreh explicitly stated, “Dumsor is not just a technical fault; it is a policy failure that is bleeding jobs and hope.” He cited examples of cold-store operators and fishmongers losing significant stock, such as a GHS 10,000 investment for a fishmonger. Restaurants are closing, and salons are laying off apprentices because they cannot maintain operations. Small-scale manufacturers cannot meet their production targets, leading to further economic strain across sectors.
Annoh-Dompreh also criticised the government for contradictions in its energy policy. He pointed out the introduction of the GHS 1 fuel levy, which was supposed to stabilise power supply and reduce fuel prices. Instead, diesel prices have risen from GHS 14.20 to GHS 16.20 per litre, and petrol from GHS 11.40 to over GHS 13.20. These increases make it unaffordable for businesses to run generators during blackouts, leading to layoffs as employers can no longer cover these costs.
The Minority Chief Whip argued that Ghana's installed power capacity should prevent widespread outages. He insists that the current issues point to deeper structural failures within the energy sector, including generation deficits, gas supply shortfalls, and transmission problems. These systemic issues undermine Ghana's economic resilience, impacting productivity and investor confidence.
Looking ahead, policymakers must urgently address these systemic energy sector challenges. The implications of continued power instability include further job losses, reduced foreign investment, and potential social unrest. Decision-makers will need to focus on implementing comprehensive reforms to restore reliable electricity supply. This includes reviewing existing power purchasing agreements and ensuring adequate fuel supply for generation plants. The financial markets will closely monitor government responses to these economic pressures, particularly regarding the national budget and debt management.
Annoh-Dompreh urged the President to implement sweeping reforms in the energy sector. These reforms include merging key state power institutions and engaging Independent Power Producers to restore generation capacity. He also called for the suspension of the GHS 1 fuel levy. Additionally, he demanded the publication of an energy sector financial audit and the establishment of an emergency energy sector task force to tackle the ongoing crisis effectively.