Ghana Association of Energy Economics is suggesting the energy sector levy be scrapped after Volta River Authority debt is paid.

Government is raising money through the energy sector levies and from local banks to defray 2.2 billion Ghana Cedis of the amount which is VRA’s Legacy Debts.

VRA which generates about 2,000 megawatts out of 4,000 megawatts total demand is indebted to the tone of over 6 billion Ghana Cedis.

Fifty per cent of the funds accruing under the Power Generation and Infrastructure Support sub-account under the Energy Sector Levies Act (ESLA 2015) will be used to retire the legacy debts.

The huge indebtedness of the power distributor (ECG) and its inefficiencies are other reasons for the introduction of the energy sector levy. 

There are, however, concerns government will continue taxing Ghanaians under the levy even after settlement of the VRA debt.

President of the Ghana Association of Energy Economics, Joshua Sarpong Kumankumah says the levy must be discontinued after debt is settled.

“Ones those benchmarks have been set and we know what is being paid at which point, then we can continue to pay the levy? Mr. Sarpong has quizzed.

He however wants to see the levy discontinued once VRA debt is cleared.

 “But once we are able to clear them, then it should be scrapped.”

Obviously energy continues to be the major worry of the country with government suggesting the Electricity Company of Ghana (ECG) be given out on concession.

The Association is the latest to join the campaign against privatization of the Electricity Company of Ghana.

“There is no need for the government to privatize ECG; there is no need for management contract or concession”.

According to them, it will be more prudent for ECG to float shares than privatize it.