Accra: The Minister of Energy and Green Transition, Dr. John Abdulai Jinapor, announced that the Electricity Company of Ghana (ECG) is on a promising path to financial recovery. This comes after the implementation of various reforms aimed at enhancing governance, boosting revenue collection, and improving operational efficiency.
According to Ghana Web, Dr. Jinapor highlighted that these strategic measures are yielding positive results, evidenced by improved revenue collection, stronger financial discipline, and increased transparency. Delivered by the Deputy Minister of Energy and Green Transition, Richard Gyan Mensah, during the 28th Annual General Meeting (AGM) of the ECG in Accra, the minister's address emphasized ECG's pivotal role in Ghana's electricity value chain. The financial health of ECG, he explained, is directly linked to the power generation and transmission sectors, impacting the overall sustainability of the energy sector.
Dr. Jinapor noted that the current government inherited an energy sector plagued by persistent technical and commercial losses, liquidity constraints, and ageing infrastructure. These challenges necessitated reforms to restore managerial discipline and accountability, as well as to boost operational efficiency. The introduction of the Cash Waterfall Mechanism and the establishment of a single revenue account were highlighted as measures that have improved transparency, strengthened cash management, and reduced revenue leakages. He also called for heightened efforts to combat illegal electricity connections, reduce system losses, and enhance customer service.
In presenting the company's 2025 performance, ECG Managing Director Kwame Kpekpena reported a substantial narrowing of losses after tax, from GHS8.26 billion in 2024 to GHS2.52 billion in 2025. This improvement was attributed to revenue growth, prudent expenditure management, and a foreign exchange gain of GHS12.16 billion due to the appreciation of the Ghana cedi.
Revenue for 2025 increased to GHS22.11 billion from GHS19.03 billion in 2024, spurred by six nationwide revenue mobilization exercises that achieved a record collection of GHS2.045 billion. Kpekpena also revealed monthly savings of approximately GHS5.6 million from decoupling electronic payment platforms, renegotiating key service contracts, and successfully concluding the Power Distribution Services arbitration.
Operational performance also saw improvements, with a 5.92 percent growth in the customer base to 5.85 million and a 31.3 percent increase in new electricity connections to 222,979. The average connection period was reduced from 56.43 days to 39.98 days. However, the Managing Director acknowledged that total system losses only decreased slightly from 27.05 percent to 26.88 percent, describing this level as unacceptably high.