EDRL, PSRL lose Ghc308.30M

The Finance Committee of Parliament has revealed that the Energy Debt Recovery levy (EDRL) and the Price Stabilisation and Recovery Levy (PSRL) has suffered a net loss of Ghc308.30M during the 2017 fiscal year.

This revelation came to the fore when the committee presented its annual report on the management of the energy sector levies and accounts for the year 2017 on the floor of Parliament yesterday.

According to the report, a total amount of Ghc3,752.57 million was initially programmed for collection in 2017 but was later revised to Ghc3,444.27.

The Chairman of the Committee, Dr Mark Assibey-Yeboah, explained that the reduction was mainly on the account of government’s policy to reduce the Public Lighting Levy (PLL) from five (5) per cent to three (3) per cent on the price per KWh of electricity consumed.

Similarly, the National Electrification Scheme Levy (NESL) was reduced from 5% to 2% on the price per KWh of electricity consumed.

“Mr Speaker, the reduction in the two levies resulted in the net loss of ESLA proceeds amounting to Ghc308.30 million, constituting 8.22% of the estimated collections for the year 2017,” he said.

Dr Assibey-Yeboah added that a total amount of Ghc2, 862.81 million was lodged into the ESLA accounts of total collections of Ghc3, 155.45 million.

He gave the breakdown for the distribution as follows: Tema Oil Refinery (TOR) was given Ghc181.76 million for TOR Debt Recovery, Ghc47.0 million in downstream foreign exchange under-recoveries; Ghc919.03 million for the payment of power utility debts, and Ghc 21.73 million for premix and Residual Fuel Oil (RFO) subsidy.

“Mr Speaker, in addition to these payments, Ghc 905.3 million and Ghc23.73 million were transferred to the Road Fund and Energy Fund to support road maintenance and the activities of Energy Commission respectively” he added.

Non-Transfer of PLL, NESL into PGISsA   

The chairman of the committee told the house in consonance with the amendment to the Act, the reduction in the levies implies that the PLL and NESL collections would no longer be transferred into the Power Generation and Infrastructure Support sub-Account (PGISsA).

He further explained that the PLL collections are to be paid to Electricity Distribution Companies (EDCS) to cover the cost of providing public lighting, as well as to the Ministry Responsible for power to support investments into and the maintenance of traffic lights, street lights, public lights and highways.

 

Story: Franklin ASARE-DONKOH

Writer’s email: franklin.asare-donkor@todaygh.com

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