The 2022 Annual Energy Sector Levy Act (ESLA) Report has revealed that actual Energy Sector Levies collected from January 2022 to December 2022 amounted to GHS 6.703 billion. This collection fell short of the target by GHS 578.40 million (7.9%) primarily due to lower consumption of petroleum products and unrealized power sales. However, it represented a 6.5% increase over the 2021 collections, largely driven by higher volumes of petroleum products lifted compared to the previous year.
Total lodgement into ESLA accounts was GHS 6.429 billion, which was 4.1% below the collections. This shortfall was attributed to factors like retention on the Road Fund and Energy Fund Levies by the Ghana Revenue Authority, unpaid invoices from Oil Marketing Companies, and issues related to the transfer of certain collections to the Ministry of Energy by the Electricity Distribution Companies (EDCs).
Of the GHS 5.804 billion of levies lodged into ESLA accounts, the funds were primarily utilized for paying power utility debts, settling coupon payments to bondholders, providing subsidies for Premix Fuel and Residual Fuel Oil (RFO), funding public lighting infrastructure, supporting road maintenance, activities of the Energy Commission, and the National Electrification Programme.
Looking ahead, a forecast of GHS 8.076 billion is programmed to be collected in 2023 under the ESLA, representing a 10.9% increase compared to 2022 programmed collections and a 20.5% increase over the actual 2022 collections. The report suggests positive outlooks for the levies in the medium-term, with estimated collections of GHS 9.644 billion, GHS 11.249 billion, and GHS 13.098 billion in 2024, 2025, and 2026, respectively.
The Energy Sector Levies Act, established in 2015 and amended in 2018, serves various purposes, including managing the liabilities of Energy Sector State-Owned Enterprises (SOEs), promoting sector investments, providing subsidies for specific purposes, supporting road maintenance, activities of the Energy Commission, public lighting, and the National Electrification Programme, all without impacting the National Budget.