The Independent Power Generators, Ghana (IPGG), has endorsed the government’s introduction of a GH¢1 Energy Sector Levy, describing it as a necessary and urgent step to arrest the growing debt crisis within the country’s electricity value chain.
In a statement issued on Thursday, June 5, 2025, the IPGG, underscored the unsustainable nature of the sector’s financial burden, warning that if left unchecked, the situation poses a serious threat to power generation, supply reliability, and investor confidence.
According to the group, the sector’s current predicament stems from years of financial mismanagement, specifically the improper use of proceeds from earlier energy levies, bonds, and loans.
These funds, it stated, were intended to clear legacy debts and restore the sector’s financial health, but were instead misapplied, lacking the transparency, accountability, and discipline needed.
“As a result, the entire power delivery ecosystem is now under immense strain,” the statement read.
It added that “Independent Power Generators are unable to recover costs, maintain assets, or secure timely fuel supplies, which undermines grid stability, endangers electricity reliability, and diminishes investor and lender confidence.”
Despite acknowledging Ghanaians’ economic hardship, the IPGG praised the Mahama government for making a “pragmatic and forward-looking” decision.
It noted that the GH¢1 levy, if properly ring-fenced and managed transparently, has the potential to restore the sector’s much-needed liquidity and credibility.
Dr Elikplim Kwabla Apetorgbor, IPGG’s Chief Executive Officer, stressed the urgency of action, warning that the cost of inaction, including blackouts, shutdowns, job losses, and a decline in national productivity, would be far more devastating than the modest levy on consumers.
“Ensuring a stable and resilient electricity supply is a shared responsibility that requires collective sacrifice and institutional accountability,” Dr Apetorgbor said.
IPGG concluded its statement with a call for public support, pledging to work collaboratively with government and stakeholders to ensure that the funds raised are utilised effectively and that the power sector is placed on a path toward financial stability, operational efficiency, and long-term resilience.
THE INTRODUCTION OF GHS1 ENERGY SECTOR LEVY IS A NECESSARY MEASURE TO RESTORE STABILITY IN THE POWER SECTOR
1. The Independent Power Generators, Ghana (IPGG), extends its firm support for the Government of Ghana’s introduction of a GHS1 Energy Sector Levy, aimed at addressing the growing and unsustainable debt within the electricity value chain. This policy intervention is both necessary and time-sensitive, given the precarious financial state of the sector.
2. It must be stated with clarity and conviction that the current accumulation of debt, now significantly compounded and overdue, was entirely avoidable. The sector’s distress, which affects power producers, fuel suppliers, and system reliability, is a direct consequence of the mismanagement and misapplication of previously established Energy Sector Levy and bond proceeds and loans. Funds that were earmarked for the settlement of legacy debts and restoration of financial health were not applied with the discipline, transparency, and accountability that the sector required.
3. As a result, the entire power delivery ecosystem is now under immense strain. Independent Power Generators (IPGG) are unable to recover costs, maintain assets, or secure timely fuel supplies, a situation that undermines grid stability, endangers electricity reliability, and diminishes confidence among investors and financial partners.
4. In this context, IPGG commends the current administration for taking responsibility and initiating decisive, corrective actions. The introduction of GHS1 levy is a pragmatic and forward-looking measure. If properly ring-fenced, monitored, and applied transparently, it can serve as a credible instrument for restoring liquidity and credibility in the power sector.
5. We acknowledge the genuine burden any new levy places on consumers, especially under current economic conditions. However, the consequences of inaction blackouts, plant shutdowns, job losses, and erosion of national productivity are far more severe and immediate. Ensuring a stable and resilient electricity supply is a shared responsibility that requires collective sacrifice and institutional accountability.
6. IPGG therefore appeals to all Ghanaians to support this measure in good faith. We stand ready to collaborate with the government and all stakeholders to ensure that the proceeds are effectively utilized, and that the sector is placed on a path of financial sustainability, operational efficiency, and long-term resilience.
Signed,
Dr. Elikplim Kwabla Apetorgbor
Chief Executive Officer
Independent Power Generators, Ghana (IPGG)
June 5, 2025
