The government has revealed that the Energy Sector Shortfall and Debt Repayment Levy generated GH¢8.81 billion in 2025, which provided essential funding to bolster the country’s energy sector and address outstanding debts.
The annual report on the levy, submitted to Parliament by Finance Minister Cassiel Ato Forson on Tuesday, June 23, indicates that these funds were deposited into the Energy Sector Support Account, created to finance energy sector shortfalls and repay legacy debts.
The report further states that an additional GH¢1.26 billion was carried over into 2025, resulting in a total of GH¢10.07 billion available in the account.
From this total, GH¢9.82 billion was expended during the year. Of this expenditure, GH¢6.32 billion was allocated to mitigate energy sector shortfalls, while GH¢3.52 billion was directed towards the repayment of legacy debt obligations.
However, the report highlighted that the revenue generated from the levy alone was inadequate to fully satisfy the sector’s financing needs in 2025.
Consequently, the Controller and Accountant General’s Department allocated an additional GH¢12.85 billion from the Treasury Main Account to fulfill outstanding obligations.
This amount included GH¢5.16 billion and GH¢7.69 billion for the payment of energy sector shortfalls and the repayment of legacy debt, respectively.
In total, the government expended GH¢22.67 billion from both the Energy Sector Support Account and the Treasury Main Account to finance energy sector shortfalls and settle legacy debt during the 2025 fiscal year.
“Lodgements for the reviewed period totaled GH¢8.81 billion, surpassing collections by GH¢158.25 million (1.8%). Additionally, an amount of GH¢1.26 billion was carried forward into 2025 as balances on the various accounts comprising the Energy Sector Support Account, resulting in total available funds of GH¢10.07 billion,” the report concluded.
In 2025, the total utilization from the Energy Sector Support Account reached GH¢9.82 billion, which included payments for energy sector shortfalls and the repayment of legacy debt as stipulated by Act 1135, resulting in a remaining balance of GH¢252.23 million,” the report stated.
“Overall, GH¢22.67 billion was disbursed for addressing energy sector shortfalls and repaying legacy debt,” the report further noted.
The Energy Sector Shortfall and Debt Repayment Levy, which imposes a charge of GH¢1 per litre on certain petroleum products, was established to generate funds for fuel procurement for thermal power generation and to tackle the outstanding debts within the energy sector.
Although stakeholders have called for increased transparency regarding the levy, the government asserts that the funds have been utilized judiciously and have played a crucial role in maintaining electricity supply and enhancing the financial stability of the energy sector.
