as Government Continues Sector Support
By Prince Ahenkorah
The Energy Sector Shortfall and Debt Repayment Levy generated GH¢8.81 billion during the 2025 fiscal year, with all proceeds directed into the Energy Sector Support Account to address persistent financial challenges in the power sector.
Finance Minister Dr Cassiel Ato Forson disclosed the figure before Parliament on Tuesday, 23 June, during the presentation of the annual report on the energy levy.
The levy, which imposes a charge of GH¢1 per litre on selected petroleum products, was introduced to raise funds for fuel procurement for thermal power generation and to assist in repaying long-standing energy sector debts.
According to the report, the GH¢8.81 billion collected in 2025 was supplemented by a carryover balance of GH¢1.26 billion from previous periods, bringing the total available in the Energy Sector Support Account to GH¢10.07 billion.
Total expenditure from the account for the year amounted to GH¢9.82 billion, allocated as follows:
· GH¢6.32 billion – operational shortfalls linked to power generation and fuel supply
· GH¢3.52 billion – repayment of legacy debts under Act 1135
The account recorded a remaining balance of GH¢252.23 million as of 31 December 2025.
Despite the substantial revenue generated by the levy, the Finance Ministry acknowledged that funds were insufficient to cover the sector’s total financial obligations for the year.
The Controller and Accountant-General’s Department was required to draw an additional GH¢12.85 billion from the Treasury Main Account to support energy sector financing needs.
Combined government spending on the energy sector in 2025 therefore totalled GH¢22.67 billion a figure that underscores the scale of financial pressure facing the sector and the extent of state intervention required to sustain electricity supply and manage accumulated debts.
Responding to concerns raised by civil society organisations and policy analysts regarding transparency and the long-term sustainability of relying on fuel levies and emergency Treasury support, the Finance Ministry defended the utilisation of funds.
The ministry stressed that the levy remains a key instrument for stabilising the energy sector, arguing that despite recurring shortfalls, the consistent application of levy proceeds has helped prevent severe disruptions in power supply and ensured a more stable electricity delivery system across the country.
Dr Forson further reiterated his commitment to improving efficiency and reducing dependency on emergency financing over time.
The management of the energy levy continues to generate public debate, with civil society organisations and policy analysts calling for greater transparency and accountability in the use of petroleum tax revenues.
Concerns have been raised about the long-term sustainability of relying on fuel levies and emergency Treasury support to address structural challenges in the power sector.