FridayOL

Ghana’s energy sector will still require government support of GH¢12.9 billion in 2025, despite the introduction of an additional GH¢1 levy on energy products, according to a report from the Finance Ministry.

The report, detailing the management of the Energy Sector Support Account (ESSA), confirms that proceeds generated from the Energy Sector Shortfall and Debt Repayment Levy remain inadequate to fully address the sector's financial obligations. This is despite the recent implementation of the supplementary levy aimed at bolstering revenues.

The ESSA was established to manage debt obligations within the energy sector, including those owed to generation, transmission, and distribution companies. The levy itself was introduced previously to help alleviate some of the financial strain. The Finance Ministry’s findings suggest that even with the increased levy, a significant funding gap persists.

The report does not specify the exact breakdown of the GH¢12.9 billion needed, nor does it detail specific areas where the funds will be allocated. However, it highlights the ongoing challenges facing Ghana’s energy sector and the continued reliance on government support to ensure its stability and operational capacity.