The Independent Power Generators, Ghana (IPGG), has endorsed the government’s decision to impose a GHS1 Energy Sector Levy on fuel, describing it as a critical and time-sensitive step to rescue the country’s ailing power sector.
In a statement issued on Thursday, June 5, the group pointed to years of financial mismanagement as the root cause of the sector’s mounting debt.
“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 statement read.
According to the IPGG, the misapplication of proceeds from the earlier Energy Sector Levy and bond inflows and external loans has left a trail of financial instability affecting fuel suppliers, power producers, and the reliability of Ghana’s energy infrastructure.
“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,” the group asserted.
The new GHS1 levy, which was recently approved by Parliament as part of the Energy Sector Levy (Amendment) Bill, 2025, is expected to raise funds to clear legacy debts and improve the liquidity of key sector stakeholders.
The government argues that the revenue will help stabilize electricity supply and reduce the risk of power disruptions.
While the levy’s introduction has drawn criticism from some political quarters, particularly due to its impact on fuel prices, IPGG insists that resolving the sector’s financial crisis cannot be postponed.
“If we are to restore confidence and stability in the electricity supply chain, this bold step is not only justified—it is long overdue,” the statement emphasized.
