Deputy Ranking Member on Parliament’s Energy Committee and Member of Parliament for Afigya Kwabre North, Collins Adomako-Mensah, has called on the Mahama-led government to completely abandon plans to implement the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL) and instead focus on fixing deep-rooted inefficiencies in Ghana’s power sector.
Speaking in response to the government’s indefinite suspension of the controversial levy — popularly known as the “Dumsor Levy,” on the Channel One Newsroom on Sunday June 15, he said there are far more urgent and impactful steps the government should be taking to stabilise the energy sector without placing additional burdens on already struggling Ghanaians.
“On our part, we believe two things,” he said. “If you go to ECG, the losses at ECG are enormous, and we are wholly in support of the Minister’s decision to bring reforms to ECG. We think that government should, as a matter of principle and as quickly as possible, bring reforms to ECG.”
He further urged the government to take swift action to renegotiate power purchase agreements signed with Independent Power Producers (IPPs), which he said are placing unsustainable financial pressure on the state and consumers.
“Number two, I think they should go back as quickly as possible to renegotiate all IPPs that they signed previously, which is putting a lot of burden on the Ghanaian people,” he stated. “I think these are the two things that government should do at this point in time.”
His comments come as the Minority in Parliament ramps up criticism of the government’s handling of the fuel levy. In a statement released on June 15, the Caucus described the last-minute U-turn on the ESSDRL as a “shameful retreat” that reflects chaotic economic management and a lack of proper stakeholder engagement.
The ESSDRL, introduced under the Energy Sector Levies (Amendment) Act, 2025 (Act 1141), was designed to raise funds to tackle Ghana’s estimated $3.1 billion energy sector debt. However, the Ghana Revenue Authority (GRA) announced its indefinite postponement after backlash from industry stakeholders and public outcry.
The government’s justification for the delay — citing global oil market volatility caused by the Iran-Israel conflict — has been widely criticised. Adomako-Mensah echoed the view that the explanation was unconvincing, especially given the administration’s past dismissal of global factors affecting Ghana’s economy under previous governments.
The Minority Caucus has called for the full repeal of the levy, arguing that rising electricity and water tariffs, inflation, and currency depreciation have already strained households and businesses. They insist the ESSDRL is not only regressive but also unnecessary, pointing to inefficiencies within ECG and poorly structured IPP contracts as the real problems.
“We categorically reject the notion that Ghana’s energy woes are due to the absence of this levy,” the Minority stated. “They are the product of poor leadership and mismanagement.”
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