The Independent Power Generators, Ghana (IPGG), has endorsed the government's decision to impose a GHS1 Energy Sector Levy on fuel, describing it as a critical and time-sensitive step to rescue the country's ailing power sector.
In a statement issued on Thursday, June 5, the group pointed to years of financial mismanagement as the root cause of the sector's mounting debt. "This policy intervention is both necessary and time-sensitive, given the precarious financial state of the sector.
It must be stated with clarity and conviction that the current accumulation of debt, now significantly compounded and overdue, was entirely avoidable," the statement read.
According to the IPGG, the misapplication of proceeds from the earlier Energy Sector Levy and bond inflows and external loans has left a trail of financial instability affecting fuel suppliers, power producers, and the reliability of Ghana's energy infrastructure. "The sector's distress, which affects power producers, fuel suppliers, and system reliability, is a direct consequence of the mismanagement and misapplication of previously established Energy Sector Levy and bond proceeds and loans," the group asserted.
