The Institute for Energy Policies and Research (INSTEPR) has accused the government of failing to comply with the Energy Sector Levies Act (ESLA) by allegedly not submitting the 2025 management accounts of the levy to Parliament. The accusation, detailed in a press release dated May 15, 2026, stems from the institute’s findings that the annual ESLA management report for the previous year has not been presented to lawmakers, potentially violating a key provision of the law.
Background of the Energy Sector Levies Act
The Energy Sector Levies Act, introduced in 2015, aims to generate revenue specifically for addressing financial challenges and legacy debts within Ghana’s energy sector. Proceeds from the levy are intended to support crucial areas such as power generation, energy infrastructure financing, and the settlement of outstanding debts.
Section 6 of the ESLA mandates that the Minister of Finance submit an annual report to Parliament detailing the management of accounts established under the law. This reporting has historically been presented alongside the national budget statement, a practice INSTEPR highlights as a consistent precedent.
INSTEPR’s Allegations and Concerns
INSTEPR’s Executive Director, Kwadwo N. Poku, stated that their investigations revealed the absence of the 2025 ESLA annual report in Parliament. This omission, the institute contends, is a direct breach of Section 6 of the ESLA.
The policy institute further raised alarms regarding the utilization of funds collected from an additional fuel levy. This levy, implemented in June 2025, increased the existing ESLA charge on petroleum products by GH¢1, bringing the total to GH¢1.95. The government at the time justified this increment by stating its purpose was to secure liquid fuel for power generation and avert electricity supply disruptions.
However, INSTEPR points out that nearly a year after the introduction of this additional levy, the country continues to experience power outages. “Almost a year after the introduction of the additional levy, lights are still going off across the country,” the institute’s statement read, questioning the effectiveness and transparency of the fund’s deployment.
Call for Accountability and Transparency
In light of these concerns, INSTEPR is calling for a public accounting of how the proceeds generated from the ESLA levies have been utilized. They specifically urge the government, and the Ministry of Finance under Cassiel Ato Forson, to promptly prepare and submit the overdue ESLA report to Parliament.
The institute emphasizes that adherence to statutory reporting obligations is fundamental for good governance and accountability in the management of public funds. “Good governance and timely reporting are essential to the rule of law,” INSTEPR asserted in their press release.
Implications and Future Outlook
The accusation by INSTEPR highlights potential governance gaps and raises questions about the transparency of energy sector financing. The failure to submit the ESLA report could undermine public trust and hinder effective oversight of public funds designated for critical infrastructure.
For citizens, the continued power outages despite an increased levy suggest a possible disconnect between revenue collection and the intended outcomes. The demand for accountability from INSTEPR puts pressure on the government to clarify the use of these funds and demonstrate tangible improvements in energy supply stability.
Moving forward, the focus will be on whether the Ministry of Finance complies with INSTEPR’s demand and submits the outstanding report to Parliament. Observers will also be watching for evidence that the additional levy is effectively contributing to the procurement of fuel and the stabilization of electricity supply, as originally intended. The resolution of this reporting issue could set a precedent for future fiscal transparency in Ghana’s vital energy sector.
Leave a Reply