Mr Haruna Iddrisu, Minister of Employment and Labour Relations, has said the decision to introduce the energy sector levy was to address the existing debt in the energy sector, especially with power supply.
He said government has made a commitment to Ghanaians to fix the power problem and as such there is the need to generate money internally to address the issue.
Speaking at a press briefing in Accra, the Minister said the energy levy was also to address major outstanding arrears in the road sector, which has slowed down infrastructural development in the country.
Mr Haruna said the energy infrastructure and rural electrification was critical to government's agenda and that the energy levy would help fund the project, stressing that the rural electrification project has covered over 70 per cent nationwide.
“The levy was to provide support to deal with debts owed to the Electricity Company of Ghana and the Volta River Authority since their financial situation is unhealthy”, he said.
He said it will be difficult to review the energy sector levy because government needs the fund to develop the economy and urged the public to understand government’s position irrespective of the difficult conditions.
Commenting on the agitation by organized labour on the upward adjustment in utility tariffs by the Public Utility Regulatory Commission, the Minister said government is negotiating with the Trades Union Congress to adjust it downwards.
He appealed to the organized labour to rescind their decision to demonstrate and engage in a dialogue for an amicable resolution of the impasse.
The organised labour intends to embark on a nationwide strike action against the recent hikes in utility prices and petroleum products.
The organized labour are also demanding for a 50 percent increase in salaries of public sector workers but several meetings between the body and government have proven futile.
They have unanimously agreed to stage a nationwide demonstration on Wednesday, January 20, 2016.
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