The government expended a total of GH¢22.67 billion in 2025 to address energy sector shortfalls and repay legacy debts, significantly exceeding the GH¢8.81 billion generated from the Energy Sector Shortfall and Debt Repayment Levy.
According to the Finance Minister, Dr Cassiel Ato Forson, proceeds from the levy, together with an additional GH¢1.26 billion carried forward into the Energy Sector Support Account, provided GH¢10.07 billion for the year. However, the amount fell short of meeting the sector’s financing needs, requiring an extra GH¢12.85 billion from the Treasury Main Account.
The details were contained in the annual report on the levy presented to Parliament on Tuesday, June 23.
The report indicated that GH¢9.82 billion from the Energy Sector Support Account was utilised during the year, with GH¢6.32 billion directed towards settling energy sector shortfalls and GH¢3.52 billion used to repay outstanding legacy debts.
Government said the Energy Sector Support Account closed the year with a balance of GH¢252.23 million.
The Energy Sector Shortfall and Debt Repayment Levy, which imposes a GH¢1 charge per litre on selected petroleum products, was introduced to generate additional revenue for fuel procurement for thermal power generation and to address long-standing debt challenges within the energy sector.
Despite concerns from some stakeholders over the management of the levy, government maintains that the funds have played a crucial role in supporting electricity generation and enhancing power supply reliability across the country.
The report further noted that revenue collections from the levy exceeded projections by GH¢158.25 million, representing a 1.8 per cent increase over expected inflows for the period under review.
