I recall vividly the vision that birthed the Energy Sector Levies Act exactly a decade ago. As the then Deputy Minister for Finance, I worked closely with key stakeholders so we could consolidate existing energy sector levies to promote prudent and efficient use of proceeds.
The foresight to require regular updates on the operations of the ESLA Act has been proven valid as we continue to read the Annual Reports presented to Parliament. Through these reports, Ghanaians have secured insights into the performance and utilisation of the levies in the energy sector. Effectively, it has become a critical tool for assessing the effectiveness of ESLA in addressing challenges in the energy sector.
I am therefore pleased that we can continue the culture of transparency and accountability and present the 2024 ESLA Report, and in so doing, provide a detailed analysis of the revenue generated, the allocation of funds to various beneficiaries, and the impact of the ESLA on the energy sector.
2024 collections underperformed by over half a billion Ghana cedis, which is a 6 percent shortfall from the revised target set at mid-year 2024. Although this may seem an improvement from the 11 percent shortfall in 2023, it continues a trend where about 8 percent shortfall was also recorded in 2022. The issues of commercial and technical losses as well as unpaid invoices by the customers continue to plague the performance of petroleum and electricity levies. Unsurprisingly, lodgments fell below actual collections by GH¢600.78 million, representing 7 percent despite exceeding the 2023 lodgments by 17.4 percent. Crucially, about 75 percent of the lodged funds were utilized in 2024, like 2023. Of equal significance in 2024 is the winding down of the ESLA Bond Programme and E.S.L.A. PLC.
The foregoing sobering updates on ESLA are only a symptom of widespread malaise in the energy sector and the attendant risks it poses to the entire economy. More importantly, the findings reinforce the need to reset the energy sector and turn around its fortunes. What I know is that we can work harder and together to enable ESLA to fully achieve its purpose and advance energy security.
I commend the dedication of the ESLA Working Group and other stakeholders, including CSOs, media and academia, for supporting the preparation of this report. Their efforts will continue to help in stabilizing the energy sector.
I recommend this report to all stakeholders, including policymakers, energy sector operators, and the public, who are interested in understanding the ESLA's role in supporting Ghana's energy sector. Let us rededicate ourselves to the task at hand, which is resetting and reinvigorating ESLA to achieve energy security for our country.