The government has revealed that the Energy Sector Shortfall and Debt Repayment Levy raised GH¢8.81 billion in 2025, contributing significantly to the financing of Ghana’s energy sector and the settlement of outstanding debt obligations.
According to an annual report presented to Parliament by Finance Minister Cassiel Ato Forson on June 23, the levy proceeds were deposited into the Energy Sector Support Account, which was established to address funding gaps in the energy sector and repay legacy debts.
The report indicated that a balance of GH¢1.26 billion was carried over from the previous year, increasing the total available funds in the account to GH¢10.07 billion. During the year, GH¢9.82 billion was disbursed, with GH¢6.32 billion allocated to cover energy sector shortfalls and GH¢3.52 billion used to settle existing debt obligations.
Despite the revenue generated from the levy, the report noted that the amount was insufficient to meet the sector’s total financial requirements. To bridge the gap, the Controller and Accountant General’s Department provided an additional GH¢12.85 billion from the Treasury Main Account. Of this amount, GH¢5.16 billion was directed toward addressing energy sector shortfalls, while GH¢7.69 billion was used for debt repayment.
Overall, government expenditure on energy sector shortfalls and legacy debt repayments reached GH¢22.67 billion in 2025, combining resources from both the Energy Sector Support Account and the Treasury Main Account.
The report further stated that levy collections exceeded projected revenue by GH¢158.25 million, representing a 1.8% increase above target. After all disbursements, a closing balance of GH¢252.23 million remained in the Energy Sector Support Account.
The Energy Sector Shortfall and Debt Repayment Levy, which charges GH¢1 per litre on selected petroleum products, was introduced to finance fuel purchases for thermal power generation and help reduce accumulated debt in the energy sector.
Although some stakeholders have called for increased transparency regarding the use of the levy, government maintains that the funds have been effectively managed and have played a key role in maintaining electricity supply and strengthening the sector’s financial position.
Source: 3news.com
