A fellow at the Center for Democratic Development (CDD-Ghana), Professor Stephen Asare, has called for bold reforms and strong accountability measures to accompany the government's proposed increase in the Energy Sector Levy, warning that financial bailouts without justice could deepen public mistrust.

In an official Facebook post on June 4, 2025, Prof Asare welcomed efforts to stabilise the sector but criticised the government’s narrow focus on revenue generation.

He argued that without clear accountability measures and structural reform, the new levy risks becoming another temporary fix that fails to address the root causes of the crisis.

“We cannot be asked to tighten our belts while those who caused the looseness go free. We need more than money. We need justice, reform, and discipline,” he stated.

Prof Asare pointed to a history of procurement abuses, inflated contracts, and the mismanagement of previous energy levies.

He also highlighted repeated warnings from the Auditor-General and the Public Utilities Regulatory Commission (PURC) that have gone unheeded.

“The energy crisis did not appear overnight. We cannot fix a broken system by pouring money into it without fixing what broke it,” he indicated.

Prof Asare also called for an urgent investigation into the last decade of energy sector spending, including a forensic audit and prosecutions of any wrongdoing, whether by public officials or private contractors.

He emphasised that any new levies must be strictly ring-fenced for specific uses, namely fuel procurement and debt repayment and be accompanied by regular public reporting on how the funds are spent.

He also stressed the need for longer-term reforms, such as renegotiating unfair power purchasing agreements, investing in renewable energy, and gradually adjusting tariffs to reflect the actual cost of electricity.

For the levy to be fair and effective, he said, it must be time-bound, tied to clear performance targets, and subject to regular parliamentary review.

Without such measures, he warned, the levy would merely perpetuate a cycle in which citizens are asked to bear the cost of elite mismanagement.

The poorest Ghanaians, he noted, would be hit hardest, with the increased levy reducing their purchasing power and placing additional pressure on already strained household budgets.

“Let this be the last time we are asked to pay for energy sector failure. Let it also be the first time those responsible are held to account,” he admonished.

Ghana’s energy sector is facing mounting financial pressure. The government reports a staggering $3.1 billion debt burden, depleted credit guarantees, and an increasing reliance on thermal power generation.

Guarantees from the World Bank and the Ghana National Petroleum Corporation, amounting to over $600 million, have already been exhausted due to unpaid bills.

Meanwhile, the cost of thermal fuel remains excluded from electricity tariffs, a gap that, if corrected, would trigger a more than 50 percent increase in electricity prices.

The government’s proposed solution is to increase the Energy Sector Shortfall and Debt Repayment Levy, which it says will help cover the $1.2 billion needed this year alone to keep thermal plants running and prevent power outages.

Officials also maintain that the increased levy will not affect petrol or diesel prices due to forex-related savings.

MRA/AE

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