“Whether we like it or not, we either pay the cost of power through tariffs or taxes,” that was the message from former Commissioner of the Public Utilities Regulatory Commission (PURC), Dr. Nii Darko Asante

He said this as he joined the panel discussion on Joy News’ PM Express with Evans Mensah on Wednesday, June 4.

His comments come in the wake of Parliament’s approval of the Energy Sector Levy (Amendment) Bill, 2025, which introduces a GH¢1 levy on petroleum products to raise funds for clearing massive debts crippling Ghana’s power sector.

Dr. Asante cautioned that while many Ghanaians are angry about the new levy, they must understand the debt burden does not vanish because of popular sentiment.

“The government doesn’t manufacture money. The President will not take money out of his pocket. The Energy Minister won’t take money out of his pocket. It will have to come from us, the citizens of Ghana,” he stressed.

According to him, the issue boils down to two distinct but related problems.

First, there’s the ongoing under-recovery of costs in the power sector, and second, the huge debts already incurred over years of inefficiencies.

“Even if we fix the inefficiencies today, that debt remains,” he said. “We still owe the IPPs and the fuel suppliers.”

He explained that while the PURC’s role is to help manage current expenditures and ensure tariffs reflect economic realities, it cannot do anything about debts that have already been incurred.

“That falls on the owner of the debt. And who owns ECG? We do—the people of Ghana. So government must find a way to pay on our behalf.”

He warned of the dangerous consequences of ignoring this reality.

“When Karpowership threatens to shut down its plant because it hasn’t been paid, you can’t increase tariffs to cover old debt. Government must find that money, and that usually means more taxes or more levies.”

Dr. Asante did not shy away from confronting the political discomfort surrounding tariff hikes.

“We can scream for lower tariffs, but if the tariffs are too low and it creates a debt, we will pay like we are paying now.”

He also pushed back against the idea that simply improving ECG’s efficiency or clamping down on power theft would be enough to fix the system.

“Even if ECG becomes 100% efficient tomorrow, it doesn’t wipe away the billions in debt already accumulated. That’s the harsh reality.”

As government justifies the new levy as a necessary intervention to stabilise power supply and settle arrears owed to Independent Power Producers, Dr. Asante insists there must also be transparency and accountability.

“People are more willing to pay if they see results. If we’re paying more, let’s see fewer blackouts, better service, and real change.”