Parliament approves Energy Sector Levies Bill 2021

Parliament has approved the Energy Sector Levies (Amendment) Bill, 2021 to address challenges in the energy sector and sanitation and pollution issues.

The Act, which amends the Energy Sector Levies Act, 2015 (Act 899), provides for an Energy Sector Recovery Levy and Sanitation and Pollution Levy.

The proceeds from the Energy Sector Recovery Levy would be utilized to meet the funding shortfall occasioned by the inability of the Electricity Distribution Companies to cover the cost of power supplied by power producers and associated capacity cost.

Additionally, the Sanitation and Pollution Levy being imposed on specific petroleum products to provide funds to support programmes to improve air quality and provide sustainable funding for the collection, treatment and disposal of liquid and solid waste.

Mr Osei Kyei-Mensah-Bonsu, Majority Leader moved the motion for the passage of the Bill.

Mr Kwaku Kwarteng, Chairman of the Finance Committee presenting the Committee’s report observed that the total estimated receipts from the two levies would be GH₵666,230,000 and GH₵311,660,000 for the Energy Sector Recovery Levy and Sanitation and Pollution Levy respectively for 2021.

Mr Cassel Ato Forson, Ranking Member on Finance in his contribution expressed concerns that there was an earlier proposal by government for the upward adjustment in the Road Fund Levy (RFL), Energy Debt Recovery Levy (EDRL) and the Price Stabilization and Recovery Levy (PSRL) in the 2019 Mid-year Budget Review speech by the Finance Minister on July 23, 2019.

He said the proposal of government was to increase the Energy Sector Levies by GHp20 per litre of petrol and diesel and GHp8 per kg for Liquefied Petroleum Gas (LPG) to raise more revenue to enable government address energy sector obligations.

He said was however surprised that the same government was attempting to increase the same levies for that particular purpose.