The Ranking Member of the Energy Committee and Member of Parliament for Asene Manso Akroso, Hon. George Kwame Aboagye, has suggested that Ghana doesn’t need to impose another energy sector levy on its citizens. Instead, he believes the Electricity Company of Ghana (ECG) should focus on reducing its commercial losses.
Hon. Aboagye proposes decoupling ECG’s distribution from revenue collection to boost efficiency and prevent recurring power outages.
By eliminating half of the commercial losses, ECG could generate approximately $3.7 billion, surpassing the revenue from the suspended Dumsor levy.
The MP also supports privatizing ECG’s revenue collection, which could enhance revenue collection efficiency. This move, he argues, would help address the financial struggles faced by ECG.
ECG has been grappling with significant commercial losses, contributing to the country’s energy sector challenges.
The Energy Sector Recovery Levy (ESLA) was introduced to help address these issues, but Hon. Aboagye believes that improving ECG’s efficiency would be a more effective solution.
Ghana’s energy sector has been plagued by legacy debt, estimated at $3.1 billion, and an additional $1.8 billion needed for fuel procurement. The ESLA increment is projected to generate GH¢5.7 billion annually, which will be used to settle energy debts and finance fuel purchases.
