The Independent Power Generators, Ghana (IPGG) has 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 was contained in a June 5, 2025, statement of the IPGG’s, signed by CEO Dr Elikplim Kwabla Apetorgbor, in which the group lauded the John Mahama-led National Democratic Congress (NDC) government for demonstrating a sense of responsibility and practicality.

“This policy intervention is both necessary and time-sensitive, given the precarious financial state of the sector,” the statement noted.

“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.”

The IPGG explained, “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.

“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.”

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FOR IMMEDIATE RELEASE

June 5, 2025

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)