Accra: The Electricity Company of Ghana (ECG) has reported a GHS2.5 billion loss for the year 2025, underscoring the mounting financial challenges confronting the nation's primary electricity distributor.
According to Ghana Web, ECG's revenue grew to GHS22.1 billion in 2025, compared to GHS19 billion the previous year. Despite this increase, the company faced significant financial pressure due to the high costs of purchasing electricity, which amounted to GHS34.8 billion, resulting in a gross loss of GHS12.7 billion.
The financial strain was exacerbated by the absence of government support, which ECG benefited from in 2024, receiving a GHS17 billion grant that year. Without such support in 2025, the company's operating loss reached GHS14.4 billion. However, a foreign exchange gain of GHS12.2 billion, largely due to the Ghana cedi's appreciation against foreign currency-denominated debt, helped mitigate the total loss.
Following taxes and other expenses, ECG concluded 2025 with an after-tax loss of GHS2.52 billion. The company's cash flow issues were evident, with a cash outflow of GHS12.5 billion from operating activities during the year.
ECG's debt levels saw a significant rise, with long-term borrowings increasing to GHS21.9 billion from GHS2.6 billion in 2024, following a procurement of around GHS21 billion in new loans. Concurrently, customer debts owed to ECG rose from GHS15.1 billion to GHS20.1 billion, while the company's obligations to suppliers, mainly independent power producers, climbed to GHS46.7 billion.
The company's equity position weakened considerably, dropping from GHS5.25 billion to GHS438 million, and its accumulated deficit reached GHS27.5 billion. Despite these challenges, the Ghana Audit Service provided an unqualified opinion on the accounts, affirming the financial statements' accuracy and fairness.
The government's ongoing efforts to reform the energy sector, including plans to introduce private sector participation in ECG by 2027, come amidst these financial difficulties. Finance Minister Dr Cassiel Ato Forson has emphasized the need for state-owned enterprise reforms to tackle the increasing energy sector debt, although organized labour has expressed concerns over private sector involvement in ECG.
Despite attempts to generate funds through the Energy Sector Shortfall and Debt Repayment Levy, which collected GHS8.81 billion in 2025, the government spent GHS22.67 billion during the same period to address energy sector debts and financing shortfalls.