Energy Levy necessary but it is not sufficient, wrongdoers must be punished - Kwaku Azar

Professor Stephen Asare, known as Kwaku Azar, is a fellow at the Center for Democratic Development in Ghana. He commented on the Energy Sector (Amendment) Bill, 2025. This bill imposes a GHC1 per litre levy on petroleum products. He believes this levy may be necessary but is not enough.

Kwaku Azar insists that those responsible for the energy sector's issues must face consequences. The levy aims to stabilize the sector and help with debt repayment. He noted that the energy sector is in crisis again, with a debt burden of $3.1 billion.

He highlighted depleted guarantees and increased reliance on thermal generation. Kwaku Azar explained that the government needs at least $1.2 billion this year to fuel thermal plants and prevent power outages.

While he sees some benefits of the levy, such as securing fuel and avoiding steep electricity tariff increases, he also pointed out downsides. These include reduced purchasing power for consumers and added financial stress on households and businesses.

Kwaku Azar emphasized that accountability is essential. He called for a forensic audit of energy spending over the last ten years. He also urged prosecution of wrongdoers and recovery of stolen funds.

He proposed several measures to improve the situation. These include using levy proceeds strictly for fuel and debt repayment, quarterly public reporting on collections, and demanding performance metrics from state-owned enterprises in the energy sector.

Additionally, he advocated for structural reforms like revising tariffs to reflect actual costs and boosting investment in renewable energy sources. "We cannot levy our way out of inefficiency," he stated firmly.

Kwaku Azar concluded by saying this should be the last time citizens pay for energy sector failures. He stressed it must also be the first time those responsible are held accountable.