Energy sector levy accrues GH¢350M – Terkper

Seth Terkper

The Energy Sector Levy Account has accrued an amount of 350 million Ghana Cedis, according to the Finance Minister, Seth Terkper.

Mr. Terkper made this known during a media briefing on Wednesday, August 31, 2016, on measures taken to address the legacy debts in the power sector.

According to Mr. Terkper, “the power generation and infrastructure levy plus the energy debt or the energy debt service accounts has approximately GH¢350 million.”

He added, “with respect to the energy debt service account which has a total of four separate accounts as we speak, is in excess of nearly GH¢280 million…we have the power generation and infrastructural support that’s a portion of that; the 250 million is the combination of the infrastructure. Also, the price stabilization levy has so far accrued about GH¢130 million approximately.”

Mr. Terkper also revealed that it will take between three to five years for government to settle the Gh¢4.4 billion it owes as Energy Sector legacy debt.

This was the conclusion reached by the Central Bank, the Ghana Association of Banks, power providers and the Ministries of Petroleum and Power following negotiations.

The debt owed 11 banks is said to be the major risk that can collapse some of the banks and threatens reliable power supply.

The banks include Ecobank, Stanchart, uniBank, Zenith Bank, GT Bank, UBA, UMB, CAL Bank, ACCESS Bank, Stanbic Bank, Fidelity Bank, First Atlantic Bank, and Ghana International Bank.

The Energy Sector Levies Act, passed in December 2015, made provision for the ‘Energy Debt Recovery Levy’ and for the Finance Ministry ‘to open and maintain an account’ into which payment of monies collected in respect of same are to be paid.

Source: Ghana/ Welsing

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