Energy Sector Levy Backed by Independent Generators

 

 

The Independent Power Generators, Ghana (IPGG), has thrown its full support behind the government’s introduction of a GHS1 Energy Sector Levy, calling it a vital step toward stabilizing the country’s electricity supply and restoring confidence in the power industry.

In a statement issued on June 5, 2025, and signed by its Chief Executive Officer, Dr. Elikplim Kwabla Apetorgbor, the IPGG stressed that while the new levy imposes an extra cost on already burdened consumers, it is a necessary sacrifice to avert an imminent collapse of the sector.

“The current accumulation of debt, now significantly compounded and overdue, was entirely avoidable,” the statement read. IPGG blamed past mismanagement of energy sector levies, loans, and bonds for the deepening financial crisis, citing a lack of discipline, transparency, and accountability in applying the funds meant to settle legacy debts and restore liquidity.

According to the IPGG, independent power producers are struggling to recover operational costs, maintain their assets, and secure fuel supplies, a situation that threatens grid stability, investment confidence, and national productivity.

The association expressed optimism that if the new levy is transparently managed and strictly ring-fenced, it could become a credible tool for turning around the sector’s fortunes. “We commend the current administration for taking responsibility and initiating corrective actions,” it added.

While acknowledging the economic pressure on Ghanaians, the group warned that the alternative—blackouts, plant shutdowns, and job losses—would be even more costly to individuals and the national economy.

The IPGG concluded by urging all Ghanaians to support the policy and pledged to work collaboratively with government and stakeholders to ensure that proceeds from the levy are used effectively to restore the energy sector to financial health.

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