Ghana’s Power Sector Deficits and Debt Repayment Levy Delivers GH¢10.07 Billion in 2025
On Tuesday, Ghana’s Finance Minister Dr. Cassiel Ato Baah Forson presented the annual report on the Power Sector Deficits and Debt Repayment Levy to Parliament. The report detailed how the levy, introduced to secure funding for thermal‑power fuel purchases and to settle legacy energy‑sector debts, performed during the 2025 fiscal year.
Revenue Generation and Allocation
According to the minister, the levy generated GH¢8.81 billion in 2025, which was deposited into the Power Sector Support Account. An additional GH¢1.26 billion carried forward from previous years increased the total resources available to GH¢10.07 billion.
The Ministry of Finance’s 2025 Annual Energy Levy report notes that deposits exceeded receipts by GH¢158.25 million (1.8 %), reflecting a modest surplus in the collection process.
Expenditure Breakdown
Of the funds available, the government drew down GH¢9.82 billion during the year. This amount was allocated as follows:
- GH¢6.32 billion to cover operating deficits in the energy sector.
- GH¢3.52 billion to repay outstanding legacy debts.
Because the levy’s revenue fell short of covering all FY2025 commitments, the Controller and Accountant‑General department supplemented the shortfall with an extra GH¢12.85 billion drawn from the Treasury’s main account. Consequently, a combined total of GH¢22.67 billion was expended from both the Energy Sector Support Account and the Treasury to address sector deficiencies and debt repayment.
By the close of 2025, the balance remaining in the Energy Sector Support Account stood at GH¢252 million.
Transparency and Stakeholder Concerns
The energy levy has attracted calls from industry stakeholders and civil‑society groups for greater transparency in how the collected funds are managed. Critics argue that clearer reporting would bolster public confidence and ensure that resources are directed efficiently toward improving electricity reliability.
In response, Dr. Forson emphasized that the levy has played a pivotal role in maintaining a more stable power supply across the country. He cited the successful settlement of legacy debts and the reduction of operational deficits as tangible outcomes of the levy’s implementation.
Supporting the government’s stance, a recent World Bank report highlighted that global gas flaring increased for the third consecutive year in 2025, underscoring the importance of securing reliable domestic fuel sources for thermal power plants—a goal the levy directly supports.
Overall, the 2025 performance of the Power Sector Deficits and Debt Repayment Levy illustrates both its financial impact on Ghana’s energy sector and the ongoing need for transparent governance to sustain stakeholder trust.
