#Expert Calls for Accountability in Energy Sector Levy

Professor Kwaku Azar has expressed concerns about the government’s proposed amendment to the Energy Sector Levies Act (2025), which aims to increase the Energy Sector Shortfall and Debt Repayment Levy. According to Azar, while the levy may be necessary to stabilize the energy sector, it must be paired with bold reforms to ensure accountability and transparency.
Azar highlights that the energy sector is facing a crisis, with a debt burden of $3.1 billion and depleted guarantees. He argues that the levy, while intended to address these issues, will reduce consumers’ fuel purchasing power and add fiscal stress on households and businesses.
To mitigate these effects, Azar proposes several reforms, including a forensic audit of the last 10 years of energy spending, prosecution of wrongdoing, and recovery of stolen funds. He also suggests ring-fencing levy proceeds for fuel and debt repayment only, with quarterly public reporting on collections and usage.
Azar emphasizes the need for structural reform, including revising tariffs to reflect real costs, renegotiating exploitative IPP deals, and accelerating investment in renewable and hydro energy. He also recommends making the levy time-bound, subject to regular performance reviews, and requiring parliamentary reauthorization every two years.
By pairing the levy with these reforms, Azar believes that the government can restore trust and ensure that the energy sector is managed efficiently and transparently. Alexander Afriyie