The Institute of Climate and Environmental Governance (ICEG) has called on Parliament to reject the Energy Sector Levy (Amendment) Bill, 2025, describing it as regressive, unjust, and deeply unfair to the Ghanaian public.
In a press release issued today, ICEG expressed strong opposition to the bill, which was laid before Parliament under a certificate of urgency. The bill proposes a new GH¢1 levy on every litre of petroleum product purchased to raise additional revenue for repaying Ghana’s accumulated energy sector debt.
ICEG argued that although servicing energy-related debts is important, it should not come at the expense of Ghanaians who are already grappling with the recent 14.75% increase in electricity tariffs. “This move is unjust and deeply unfair to Ghanaians,” the organisation stated.
The release noted that the energy sector debt stems from issues such as unfavourable power purchase agreements, weak revenue collection, mismanaged subsidies, and dependence on expensive thermal power. ICEG argued that these problems are the result of policy decisions and not the fault of ordinary Ghanaians.
“There is no evidence that increased levies lead to lasting solutions,” ICEG warned, stressing that the bill fails to offer a forward-looking approach to Ghana’s energy crisis.
ICEG also highlighted the bill’s potential negative impacts, including increased fuel prices which could worsen transportation costs, food prices, and inflation, thereby aggravating poverty and inequality among low-income households.
The organisation urged lawmakers to consider the economic burden on Ghanaians and reject the proposed levy, offering several recommendations as alternatives:
- Renegotiate costly power purchase agreements, reform ECG’s operations, and promote renewable energy.
- Initiate an independent audit of all ESLA receipts and expenditures since 2015, with public disclosures.
- Establish an independent Energy Sector Stabilization Authority to manage energy debts transparently.
- Engage civil society organisations, the private sector, and development partners in dialogue on sustainable solutions.
ICEG concluded by urging that Ghana’s energy security be grounded in fairness, integrity, and sustainability, rather than in recurring taxes that disproportionately affect vulnerable citizens.
Below is a copy of the release:
Source: Ghana/Starrfm.com.gh/Risa Wyettey Cofie
