ECG losses come under heavy scrutiny as PAC questions management on financial sustainability

The financial performance of the Electricity Company of Ghana (ECG) has come under scrutiny at the Public Accounts Committee (PAC), with members questioning the company’s management over reported losses exceeding GH¢7 million.

The concerns were raised on Friday, October 17, 2026, as the committee continued its examination of the Auditor-General’s Report for the year ending 2024.

The committee sought explanations from ECG officials on the factors contributing to the company’s financial difficulties and measures being taken to improve its financial position and ensure long-term sustainability.

Responding to the concerns, ECG Managing Director, Ing. Julius Kwame Kpekpena, said efforts were being made to reduce the cost of electricity purchased from Independent Power Producers (IPPs), which he identified as a major contributor to the company’s expenditure.

“Throughout 2025 and 2026, the government has been making efforts to reduce the cost of power purchases through negotiations with IPPs, and we have received significant discounts from the negotiations,” he said.

He said the introduction of competitive procurement for additional electricity generation was another measure aimed at reducing the cost of power generation.

“There’s also the law for competitive procurement of additional generation, meant to reduce the cost of production. So there are a lot of measures the government is implementing to reduce the cost. The cost at which we buy the power is what is driving the cost,” he said.

The committee also examined the issue of electricity tariffs, with ECG indicating that adjustments could be necessary to enable the company to break even and strengthen its financial position.

The engagement forms part of the PAC’s ongoing review of the Auditor-General’s findings and its broader efforts to ensure accountability and prudent management of public resources.