Businesses will increase prices of goods and services over implementation of Emissions Levy – Bright Simons

Vice President of IMANI Africa, Bright Simons, has suggested that businesses in the country will transfer the burden of the Emissions Levy to customers.

This means that the additional costs incurred due to the levy will likely be reflected in the prices of goods and services.

“Ghana’s private electricity generation companies are finally waking up to the likely impact of the emissions levy on their business. They have made it clear that they will pass all the costs on to consumers,” he wrote in a post on X.

This comes at a time when Chief Executive Officer (CEO) of the Independent Power Producers (IPPs), Dr. Elikplim Kwabla Apetorgbor, indicated that the implementation of the Emissions Levy, which came into effect on February 1, 2024, will lead to a rise in the cost of electricity.

According to his assessment of the Emissions Levy, set at GH₵100 per tonne of carbon dioxide (CO2), Dr. Apetorgbor cautioned that this levy will translate to increased expenses in electricity generation, thereby raising the cost per kilowatt-hour (kWh) and subsequently resulting in higher tariffs for consumers.