The Independent Power Generators, Ghana (IPGG), has thrown its support behind the government’s introduction of the GHS1 Energy Sector Levy, describing it as a necessary and urgent measure to address the country’s growing energy sector debt.
The GHS1 levy on fuel, recently approved by Parliament as part of the Energy Sector Levy (Amendment) Bill, 2025, is intended to generate additional revenue to clear outstanding debts in the power sector and ensure a more stable electricity supply across the country.
In a statement released on Thursday, June 5, the Chief Executive Officer of IPGG, Dr. Elikplim Kwabla Apetorgbor, said the levy was crucial to restoring financial stability within the power sector.
He attributed the current financial distress in the sector—affecting power producers, fuel suppliers, and system reliability—to what he described as the mismanagement and misapplication of previously established energy sector levies, bond proceeds, and loans.
“This policy intervention is both necessary and time-sensitive, given the precarious financial state of the sector. It must be stated with clarity and conviction that the current accumulation of debt, now significantly compounded and overdue, was entirely avoidable. The sector’s distress, which affects power producers, fuel suppliers, and system reliability, is a direct consequence of the mismanagement and misapplication of previously established Energy Sector Levy and bond proceeds and loans.”
His support follows the passage of the Energy Sector Levy (Amendment) Bill, 2025 by Parliament. The bill introduces a GHS1 increase per litre of fuel, a move projected to generate GHS5.7 billion annually. These funds are earmarked to settle mounting debts in the energy sector and ensure a consistent power supply across the country.