Ensure Transparency in Use of Energy Levies to Restore Confidence – KPMG Partner
Partner at KPMG Ghana, Randolph Annor, has called for greater transparency and accountability in the utilisation of energy levies, stressing that improved governance and clear performance benchmarks for State-Owned Enterprises (SOEs) could significantly strengthen the country’s energy sector at little to no cost.
Speaking at the 14th Ghana Economic Forum (GEF) in Accra on Wednesday, October 29, 2025, during a panel discussion on the theme “Financing the Future: Tackling Legacy Debts and Building a Resilient Energy Economy,” Mr Annor said Ghana’s energy sector challenges can be partially addressed through “very low-cost or no-cost initiatives” that have high impact.
“We have been collecting all these levies under the ESLA Act, which earmarks specific portions for different purposes. The question is, how have we utilised them so far? We need transparency from the very top on how much has been collected and how much has been spent to reduce sector debt,” he stressed.
He noted that government recently increased the Energy Sector Levies Act (ESLA) charge by one cedi but has yet to provide a clear public account of how the additional funds have been applied.
“This is something that can be done immediately. It doesn’t require new resources, just the will to do it. Transparency increases credibility and builds trust among sector players and financiers,” he added.
Mr Annor explained that greater accountability in the use of ESLA proceeds would also help banks and financial institutions design innovative financing products to support debt reduction efforts in the power sector.
Beyond transparency, he underscored the need for strong corporate governance and measurable performance indicators for SOEs managing the energy sector.
“We must have clear Key Performance Indicators (KPIs) that are monitored and reported periodically. If you are not performing, decisions must be taken whether you step aside or otherwise,” he remarked, adding that effective governance structures are key to reversing years of inefficiency.
On addressing the energy sector’s legacy debts, Mr Annor proposed the securitisation of inflows such as levies or tariffs to raise capital for debt repayment, a mechanism previously used through ESLA bonds.
“We can securitise some of the loans we currently owe through bonds backed by tariffs or a portion of the levy. That would free up liquidity to pay off existing debts and encourage new investments in the sector,” he explained, cautioning that such measures must be structured to avoid increasing the national debt burden.
Mr Annor further advocated for a stronger policy focus on renewable energy, noting that Ghana’s current renewable share in the energy mix remains below three percent.
“We need a long-term plan that deliberately promotes investment in renewables. Government can create the right incentives and enabling environment to attract private capital into solar and wind energy. That’s the future,” he emphasised.
He cited Kenya as an example of a country that has successfully leveraged renewable energy, with geothermal sources contributing significantly to its energy mix, urging Ghana to emulate such strategic diversification.
Mr Annor concluded that enhanced transparency, performance-based governance, innovative debt management, and renewable energy investment are key steps toward building a resilient and sustainable energy economy.
