The Independent Power Generators Ghana (IPGG) has welcomed the introduction of the GH¢1 Energy Sector Levy, describing it as a necessary measure to restore stability in the power sector.
According to the IPGG, the policy intervention is both urgent and essential, given the precarious financial state of the sector.
The association has, therefore, expressed strong support for the government’s introduction of the levy, which it says is aimed at addressing the growing and unsustainable debt within the electricity value chain.
In a statement signed by its Chief Executive Officer, Dr. Elikplim Kwabla Apetorgbor, the IPGG noted that the distress in the sector — affecting power producers, fuel suppliers, and system reliability — is a direct result of the mismanagement and misapplication of proceeds from previously established Energy Sector Levies, bonds, and loans.
“Funds that were earmarked for the settlement of legacy debts and the restoration of financial health were not applied with the discipline, transparency, and accountability that the sector required,” the statement added.
Power Delivery Ecosystem Under Immense Strain
The IPGG said the entire power delivery ecosystem is now under immense strain, stressing that independent power generators are unable to recover costs, maintain assets, or secure timely fuel supplies — a situation that undermines grid stability, endangers electricity reliability, and erodes confidence among investors and financial partners.
“In this context, IPGG commends the current administration for taking responsibility and initiating decisive, corrective actions. The introduction of the GH¢1 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,” the statement noted.
The IPGG acknowledged the burden any new levy places on consumers, especially under current economic conditions.
However, it warned that the consequences of inaction — including blackouts, plant shutdowns, job losses, and a decline in national productivity — would be far more severe and immediate.
The association emphasized that ensuring a stable and resilient electricity supply is a shared responsibility that demands both collective sacrifice and institutional accountability.
It therefore appealed to all Ghanaians to support the measure in good faith and concluded, “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.”