IPGG backs GH¢1 fuel levy as lifeline for power sector

The Independent Power Generators, Ghana (IPGG) supports the GHS1 Energy Sector Levy. They see it as urgent to address the country's energy sector debt.

Parliament recently approved this levy as part of the Energy Sector Levy (Amendment) Bill, 2025. The levy aims to generate revenue to clear debts in the power sector. It will also help ensure a stable electricity supply across Ghana.

Dr. Elikplim Kwabla Apetorgbor, CEO of IPGG, stated that the levy is crucial for financial stability. He noted that mismanagement of previous levies and loans has caused current financial distress. This distress affects power producers, fuel suppliers, and system reliability.

He emphasized that the growing debt was avoidable and resulted from poor management. The new GHS1 increase per litre of fuel is expected to raise GHS5.7 billion annually. These funds will help settle mounting debts and support consistent power supply.

Finance Minister Dr. Cassiel Ato Forson reported a $3.1 billion debt burden in Ghana's energy sector. An additional $3.7 billion is needed to clear all arrears fully. Furthermore, $1.2 billion is required for fuel procurement in 2025 alone.

Dr. Forson called the levy a lifeline for electricity infrastructure, stressing timely payments are essential for energy producers.

In an official statement on June 5, 2025, IPGG reiterated its support for the GHS1 Energy Sector Levy. They highlighted its necessity due to the precarious financial state of the sector.

IPGG acknowledged that previous funds were not used properly for debt settlement or restoring financial health. This mismanagement has strained the entire power delivery ecosystem.

Independent Power Generators cannot recover costs or maintain assets effectively now. This situation threatens grid stability and investor confidence.

IPGG praised the government’s decisive actions in introducing this levy as a pragmatic measure. If managed transparently, it can restore liquidity in the power sector.

They recognize that any new levy burdens consumers but stress that inaction leads to severe consequences like blackouts and job losses.

Ensuring stable electricity supply requires collective sacrifice and accountability from all stakeholders.

IPGG appeals to all Ghanaians to support this measure in good faith and collaborate with the government for effective fund utilization.

Signed,
Dr. Elikplim Kwabla Apetorgbor
Chief Executive Officer
Independent Power Generators, Ghana (IPGG)