The Institute for Energy Security (IES) has cautioned that Ghanaians could soon face steeper electricity tariffs if the country fails to urgently address its ballooning US$3.1 billion energy sector debt.
In a strong-worded critique of government inaction, IES Executive Director Nana Amoasi VII said the suspension of critical reforms, particularly the proposed GHS1 Energy Sector Recovery Levy, is jeopardising Ghana’s power stability and placing the burden on consumers.
“If this debt is not urgently tackled, the cost will be passed on to the people through higher tariffs. It’s only a matter of time,” he told the Ghana News Agency in an exclusive interview.
The levy—initially introduced as part of Ghana’s three-year US$3 billion IMF programme—was designed to help cover shortfalls in fuel supply financing and stabilise power generation. However, its suspension has left a gaping hole in revenue for the already distressed sector.
According to Nana Amoasi VII, Ghana’s power plants, especially thermal units, face difficulties in procuring fuel due to the government’s inability to fund operations, caused by a mix of poor revenue collection, political interference, misapplication of statutory levies like ESLA, and inefficiencies at the Electricity Company of Ghana (ECG).
He explained that the Energy Sector Levy Act (ESLA), introduced in 2015 and expected to clear legacy debts within five years by generating approximately US$600 million annually, has failed due to mismanagement and lack of accountability. “After nearly a decade, the debt still stands—and it’s growing,” he said.
He also slammed the collapse of the Power Distribution Services (PDS) concession deal, citing greed, poor transparency, and lack of due diligence as reasons why the arrangement with ECG’s private partner failed.
“The PDS deal was a missed opportunity. We had the chance to inject capital and professionalism into ECG operations, but we lost it due to a lack of integrity and governance,” he lamented.
The IES boss proposed a multi-pronged strategy that includes restoring the suspended levy with strong accountability measures, encouraging responsible private sector participation, and ensuring strict adherence to the cash waterfall mechanism—a tool meant to streamline how revenues are shared among stakeholders in the power sector.
He further called for broad stakeholder dialogue, saying any credible recovery plan must be built on consensus, transparency, and civic oversight.
“We cannot afford business-as-usual. Ghanaians must demand accountability, and government must provide a clear, sustainable roadmap or risk triggering deeper crises in energy access and national finances,” Nana Amoasi VII warned.
Without intervention, he added, Ghana’s energy crisis will not only threaten homes and industries but also derail public investments in education, health, and infrastructure, as limited funds are reallocated to keep the lights on.
