The Ministry of Finance has disclosed that the actual Energy Sector Levies (ESL) collected from January to December 2022 amounted to GH¢6,703.30 million. This information was provided in the 2022 Annual Report on the Management of the Energy Sector Levies and Accounts.
The revenue generated in 2022 fell short of the estimated total of GH¢7,281.70 million for Energy Sector Levies to be collected in the fiscal year. This represents a deficit of GH¢578.40 million or 7.9 percent below the target. The Ministry of Finance attributes this deviation mainly to “low consumption of petroleum products and unrealized power sales.”
Nevertheless, the 2022 collections registered a 6.5 percent increase of GH¢409.43 million compared to the 2021 collections of GH¢6,293.87 million. This rise was primarily due to an increase in the volume of petroleum products lifted in 2022 compared to the previous year.
Meanwhile, the total lodgement into the established and other accounts under the ESLA amounted to GH¢6,429.59 million out of the collections of GH¢6,703.30 million. The lodgement was GH¢273.71 million below the collections, representing a 4.1 percent deficit. This discrepancy was attributed to various factors, including the retention of the Road Fund and Energy Fund Levies by the Ghana Revenue Authority (GRA), unpaid invoices by Oil Marketing Companies (OMCs), and the inability of the Electricity Distribution Companies (EDCs) to transfer Power Levies (PLL) and National Electrification Scheme Levies (NESL) collections to the Ministry of Energy.
Of the total levies lodged into the ESLA accounts, GH¢5,804.60 million was utilized by the end of December 2022. These funds were primarily allocated to settle power utility debts, make coupon payments to bondholders through E.S.L.A. PLC, provide subsidies for Premix Fuel and Residual Fuel Oil (RFO), support public lighting infrastructure and related power consumption, contribute to road maintenance, and fund the activities of the Energy Commission. Additionally, they were utilized to support the National Electrification Programme.
For 2023, a total of GH¢8,076.52 million is projected to be collected in relation to the ESLA, representing a 10.9 percent increase over the 2022 programmed collections of GH¢7,281.70 million and a 20.5 percent increase over the actual 2022 collections.
According to the report, the outlook for these levies remains positive, with projections indicating substantial growth over the medium-term. Estimated amounts of GH¢9,644.94 million, GH¢11,249.96 million, and GH¢13,098.72 million are anticipated for collection in 2024, 2025, and 2026, respectively.
The 2022 Annual Report is prepared in accordance with the provisions of Section 6 of the Energy Sector Levies Act (ESLA), 2015 (Act 899).