The government has paid off about US$1.47 billion in outstanding energy-sector obligations as part of efforts to restore financial stability to the power sector, Energy and Green Transition Minister, Dr John Abdulai Jinapor, has disclosed.

Dr Jinapor said the government had also secured savings of approximately US$500 million by increasing the use of natural gas for power generation instead of relying heavily on more expensive liquid fuels.

Speaking at a press briefing on Thursday, August 20, the Minister said the measures were helping to lower the cost of electricity generation and ease financial pressures within the sector.

He noted that changes to the Cash Waterfall Mechanism had improved the flow of payments to Independent Power Producers, while negotiations with power companies had yielded a further US$250 million in savings.

According to Dr Jinapor, the interventions have also slowed the build-up of arrears, with the energy sector's outstanding debt estimated at about GH¢80 billion when the current government assumed office.

He said the combination of debt repayments, improved payment systems, greater reliance on natural gas and negotiations with IPPs formed part of a broader strategy to rebuild the financial health of the energy sector.

Dr Jinapor said the government would continue implementing measures aimed at cutting generation costs, reducing arrears and putting the sector on a more sustainable financial footing.