ECG reduces annual loss by 69.5% from GHS8billion to GHS2.5billion amid revenue surge in 2025

The Electricity Company of Ghana (ECG) significantly improved its financial performance in 2025, reducing its annual loss by 69.5 per cent to GHS2.52 billion from GHS8.26 billion recorded in 2024.

The turnaround was driven by increased revenue, cost-cutting initiatives, contract renegotiations and substantial foreign exchange gains following the appreciation of the Ghana cedi.

The Managing Director of ECG, Mr. Kwame Kpekpena, announced the company's performance at its 28th Annual General Meeting in Accra, where ECG also cleared a long-standing backlog by presenting audited financial statements for the first time since 2018.

According to the audited accounts, total revenue rose by 16.2 per cent from GHS19.03 billion in 2024 to GHS22.11 billion in 2025. Revenue from electricity sales increased by 16.5 per cent to GHS20.84 billion, accounting for more than 94 per cent of the company's total income.

Despite the improved revenue, ECG continued to grapple with high operating costs. The cost of purchasing and distributing electricity climbed from GHS31.47 billion in 2024 to GHS34.77 billion in 2025, resulting in a gross loss of GHS12.66 billion.

The report further showed that the company's total assets grew by 8.5 per cent to GHS82.75 billion. However, shareholders' equity declined sharply from GHS5.25 billion to GHS438 million, largely due to reduced gains from property revaluations following improved macroeconomic conditions.

Mr. Kpekpena attributed the sharp reduction in losses mainly to a foreign exchange gain of GHS12.16 billion in 2025, compared with a foreign exchange loss of GHS8.84 billion the previous year. He explained that the stronger cedi significantly reduced the value of ECG's foreign currency obligations, particularly debts related to power purchases and loans.

He said the improved results reflected deliberate management reforms aimed at restoring the company's financial health.

"We organised six revenue mobilisation exercises that achieved an all-time high single collection of GHS2.045 billion, decoupled e-payment platforms to save GHS5.6 million monthly, renegotiated key service contracts and successfully concluded the Power Distribution Services arbitration," he said.

The Managing Director disclosed that ECG now saves approximately GHS13.2 million every month after renegotiating its payment services agreement with Hubtel. He added that terminating underperforming supply contracts had also generated estimated savings of US$227.6 million.

Operational performance also improved during the year. ECG's customer base expanded by 5.9 per cent, increasing from 5.52 million to 5.85 million customers. New service connections rose by 31.3 per cent to 222,979, while prepaid customers now account for 53.5 per cent of the company's total customer population.

System losses recorded a marginal improvement, declining from 27.05 per cent in 2024 to 26.88 per cent in 2025.

The Board Chairman of ECG, Ing. William Amuna, said the company had adopted a four-point strategy to strengthen its long-term financial sustainability.

According to him, the strategy focuses on achieving cost-reflective tariffs, reducing system losses, improving revenue mobilisation and expanding non-tariff income sources.

He added that improved revenue collection, debt reduction efforts and compliance with the Cash Waterfall Mechanism had strengthened liquidity across the energy sector and contributed to a 35 per cent reduction in outstanding debts owed to Independent Power Producers compared with 2024.