The Independent Power Generators, Ghana (IPGG), has backed the government’s introduction of the GHS1 Energy Sector Levy, describing it as a necessary and time-sensitive measure to address the growing debt crisis within the power sector.
In a press release dated June 5, 2025, and signed by its Chief Executive Officer, Dr. Elikplim Kwabla Apetorgbor, the IPGG stated that the sector’s current financial distress — affecting power producers, fuel suppliers, and overall system reliability — is a result of the “mismanagement and misapplication” of previously established energy levies, bond proceeds, and loans.
According to IPGG, the levy is a pragmatic and forward-looking policy that, if properly ring-fenced, transparently monitored, and responsibly applied, could help restore liquidity and credibility in the energy value chain.
“The introduction of the GHS1 levy is a necessary measure to restore stability in the power sector,” the statement said. “The debt situation is precarious and was entirely avoidable. Funds meant to settle legacy debts were not applied with the needed discipline, transparency, and accountability.”
The group emphasized that the sector is now under immense strain, with independent producers struggling to recover costs, maintain assets, and secure timely fuel supplies—challenges that threaten grid stability, investor confidence, and the reliability of electricity nationwide.
While acknowledging the financial burden the new levy may place on consumers, IPGG warned that the consequences of inaction — such as blackouts, plant shutdowns, job losses, and reduced national productivity — would be far worse.
They appealed to the public to support the measure in good faith and pledged their commitment to working with the government and stakeholders to ensure the levy is used effectively to put the sector back on a path of financial sustainability and long-term resilience.
Below is a copy of the statement:
Source: Ghana/Starrfm.com.gh/Calvin Powell
