Legal Expert Calls for Sunset Clause in Energy Sector Levy

Accra: Mr Kofi Bentil, a private legal practitioner and Vice President of Imani Africa, has called for the inclusion of a sunset clause in the newly passed Energy Sector (Amendment) Bill 2025. The bill, which imposes a GHS1 levy on every litre of petroleum products, aims to raise funds to address Ghana’s $3.7 billion energy sector debt.

According to Ghana News Agency, Mr Bentil expressed scepticism during a televised discussion, noting that the new tax alone may not resolve the persistent challenges faced by the Electricity Company of Ghana (ECG). His concerns revolve around the absence of a sunset clause in the legislation and the lack of sufficient justification from the government for the new levy.

A sunset clause ensures that a law, specific provision, or government programme automatically terminates after a set period or upon fulfilling certain conditions. Mr Bentil emphasised that such a clause in the energy sector levy must factor in key variables, particularly the pricing of petroleum products on the global market. He noted that a sunset clause would allow for adjustments to the levy if factors such as crude oil price fluctuations arise.

Mr Bentil stressed that taxation alone cannot resolve ECG’s structural inefficiencies and that necessary reforms must accompany the levy to enhance operational efficiency. He noted that ECG’s challenges stemmed primarily from corruption and incompetence, rather than a lack of financial resources.

Mr Bentil accused politicians of benefiting from agreements meant to tackle the country’s power crises, warning that such arrangements place future generations in deeper debt. He urged competent management and a rigorous crackdown on corruption as genuine solutions to the sector’s long-standing issues.