The Independent Power Generators, Ghana (IPGG), have welcomed the government’s new GHS1 fuel levy, calling it a critical step toward rescuing the nation’s financially troubled energy sector.
The levy, introduced through the Energy Sector Levy (Amendment) Bill, 2025 and passed by Parliament, is expected to raise an estimated GHS5.7 billion annually. The revenue will be used to pay off ballooning sector debts and support a reliable national power supply.
Backing the move, IPGG CEO Dr. Elikplim Kwabla Apetorgbor underscored the urgent need for the intervention, stressing that the sector’s growing financial instability can no longer be ignored.
“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.”
Dr. Apetorgbor’s statement comes as government officials push to restore confidence in the sector, which is grappling with a debt stock of $3.1 billion.
According to Finance Minister Dr. Cassiel Ato Forson, another $3.7 billion is required to settle all arrears, while an additional $1.2 billion is needed to secure fuel for thermal generation in 2025.
He described the newly approved levy as a financial lifeline, noting that regular payments to power producers are essential for uninterrupted service delivery.
With industry players like IPGG endorsing the measure, the government hopes the levy will help stabilize the sector, attract investment, and ensure Ghanaians have steady access to electricity.
Read below the statement:
FOR IMMEDIATE RELEASE
June 5, 2025
THE INTRODUCTION OF GHS1 ENERGY SECTOR LEVY IS A NECESSARY MEASURE TO RESTORE STABILITY IN THE POWER SECTOR
The Independent Power Generators, Ghana (IPGG), extends its firm support for the Government of Ghana’s introduction of a GHS1 Energy Sector Levy, aimed at addressing the growing and unsustainable debt within the electricity value chain. 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. Funds that were earmarked for the settlement of legacy debts and restoration of financial health were not applied with the discipline, transparency, and accountability that the sector required. As a result, the entire power delivery ecosystem is now under immense strain. Independent Power Generators (IPGG) are unable to recover costs, maintain assets, or secure timely fuel supplies, a situation that undermines grid stability, endangers electricity reliability, and diminishes confidence among investors and financial partners. In this context, IPGG commends the current administration for taking responsibility and initiating decisive, corrective actions. The introduction of GHS1 levy is a pragmatic and forward-looking measure. If properly ring-fenced, monitored, and applied transparently, it can serve as a credible instrument for restoring liquidity and credibility in the power sector. We acknowledge the genuine burden any new levy places on consumers, especially under current economic conditions. However, the consequences of inaction blackouts, plant shutdowns, job losses, and erosion of national productivity are far more severe and immediate. Ensuring a stable and resilient electricity supply is a shared responsibility that requires collective sacrifice and institutional accountability. IPGG therefore appeals to all Ghanaians to support this measure in good faith. We stand ready to collaborate with the government and all stakeholders to ensure that the proceeds are effectively utilized, and that the sector is placed on a path of financial sustainability, operational efficiency, and long-term resilience.
Signed, Dr. Elikplim Kwabla Apetorgbor Chief Executive Officer Independent Power Generators, Ghana (IPGG) Ataa Ayi’s mechanic released after 23 years in jail
