President John Dramani Mahama has spoken out in defense of the controversial GH¢1 increase in the Energy Sector Recovery Levy (ESLA), describing it as a difficult but crucial step to rescue Ghana's power sector from collapse.
In a statement on Tuesday, the President revealed that Ghana's energy sector debt has ballooned to over US$3.1 billion, with an additional US$1.8 billion required to secure fuel for consistent thermal power generation in the coming months. "The growing energy sector liabilities constitute the greatest existential threat to fiscal consolidation and macro-economic stability," Mahama warned.
Parliament passed the Energy Sector Levies Act (Amendment) Bill, 2025, under a certificate of urgency on Monday, authorizing the GH¢1 hike.
The revised levy is projected to rake in GH¢5.7 billion annually, funds the President says will be "strictly ring-fenced" to address legacy energy debts, ongoing fuel procurement, and ultimately prevent recurring power outages. "This decision, though difficult, is necessary and justifiable.
