Ghana’s Independent Power Generators (IPGG) have given conditional backing to the government’s new GH₵1 Energy Sector Levy, calling it a necessary step to address growing debt in the power sector. However, the group is demanding full transparency and accountability in how the funds are managed.
In a statement, IPGG described the levy as a “pragmatic and forward-looking measure” aimed at resolving financial pressures in the sector. But it warned that poor management of previous funds nearly pushed the sector to collapse.
“The current debt crisis, which has worsened over time, could have been avoided,” said Dr. Elikplim Kwabla Apetorgbor, CEO of IPGG. “It is the result of misusing earlier energy sector levies, loans, and bond proceeds.”
IPGG called on the government to ring-fence the new levy’s proceeds and ensure they are used strictly for their intended purpose. The group emphasized that proper oversight is needed to restore financial stability and improve electricity supply.
According to Dr. Apetorgbor, past funds meant to clear legacy debts were handled without the transparency or discipline required. This left many power producers, fuel suppliers, and other key players unable to recover costs or maintain their facilities.
“The entire electricity supply chain is under serious stress,” he said. “This is affecting grid stability, power reliability, and investor confidence.”
While the group welcomed the government’s recognition of the sector’s challenges, it also urged officials to act in ways that rebuild public trust. Dr. Apetorgbor acknowledged that the levy could add to the burden on consumers but warned that failing to act could lead to blackouts, plant shutdowns, job losses, and lower national productivity.
IPGG called on the public to support the levy only if the government can prove it is committed to using the funds responsibly. The group also pledged to work with authorities to ensure the long-term financial health of the sector.
