In a scathing critique, the Chamber of Petroleum Consumers (COPEC) has dismissed the government’s reliance on new taxes to bail out Ghana’s struggling power sector, warning that “money alone won’t fix a broken system.” COPEC argues that without deep structural reforms—ranging from mismanagement and political interference to inefficiencies in generation and distribution—pumping more funds into the sector is like pouring water into a leaking bucket. While authorities frame new levies as a lifeline for energy stability, critics say it’s a short-term patch that burdens consumers while sidestepping the real, systemic issues choking the sector.
With a new fuel levy set to take effect, government hopes to generate revenue to address persistent challenges in the power sector. But not everyone is convinced this is the right place to start.
Speaking with The High Street Journal, Duncan Amoah, Executive Secretary of the Chamber of Petroleum Consumers (COPEC), believes the country is leaning on the wrong tool to start solving a deeply structural problem, though he acknowledges that raising money is also part of the process.
While the government sees the introduction of the new levy, particularly in the energy and petroleum space, as a necessary step toward sector recovery, Amoah argues that this approach has been tried before and has failed to bring lasting change. He points to the Energy Sector Levies Act (ESLA), introduced in 2015, as an example of how financial interventions, in the absence of real reform, can lose their impact over time.
In his view, money alone cannot mend the broken systems within the energy sector. He describes past tax-led solutions as ineffective and insufficient in addressing the underlying issues.
“Money solutions have simply proven to be the least efficient,” he explained, noting that despite the passage of time and billions collected, the fundamental problems persist. “You may come back 10 years again to ask for more because there are still problems.”
Instead of continuing to pile more taxes on Ghanaians, Amoah is calling for a shift in focus — from fundraising to reform. He believes that fixing the system from within is the only way to create a sustainable energy future for the country.
He speaks passionately about the need to block leakages, reduce inefficiencies, and root out corruption. For him, this includes addressing long-standing governance issues within institutions like the Electricity Company of Ghana (ECG), which he says operates with over 80 bank accounts, a practice that raises serious questions about transparency and accountability.
“Fixing of systems, blocking the corrupt issues that pertain within the sector, and ensuring the leakage and the bleeding of the power sector is stopped — that’s the path forward,” he said, gently but firmly.
Amoah also emphasizes that the road to stability will require heavier lifting: decisive action to achieve full cost recovery, possibly bringing in private sector participation, and streamlining procurement and operational procedures. These reforms, he suggests, will do far more than any tax ever could.
“If we need to regulate the power sector, let’s do so immediately. If we need to introduce the private sector, let’s do so,” he advised. “But as it stands, Ghana is accumulating debt at a faster rate than any levy can fix.”
His concern is not only about policy but about fairness. Amoah believes Ghanaians are already shouldering a heavy financial burden and will not tolerate endless levies, especially if they do not see improvements in the quality and reliability of service.
In the long run, he argues, transparency will be key to restoring trust. He proposes a public-facing dashboard that details how much ECG collects, how it spends, and what gaps remain. This, he believes, would not only reduce waste and suspicion, but also prepare the public to better understand necessary tariff adjustments.
“Ghanaians won’t tolerate this tax forever. At some point, it has to go. But that will only be possible if the structural rot is addressed now,” he said.
Last Updated on June 12, 2025 by Senel Media
