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• ECG's loss after tax narrowed significantly from GH¢8.26 billion to GH¢2.52 billion in 2025.
• Revenue growth, prudent expenditure management, and a foreign exchange gain contributed to the improvement.
• The company implemented measures to reduce system losses and improve customer service.

The financial recovery of ECG is crucial for the overall sustainability of the energy sector.

The Electricity Company of Ghana (ECG) has made significant strides in its financial recovery journey, thanks to reforms aimed at strengthening governance, improving revenue mobilization, and enhancing operational efficiency. The company's loss after tax narrowed significantly from GH¢8.26 billion in 2024 to GH¢2.52 billion in 2025, a reduction of 69 percent. This improvement can be attributed to various factors, including revenue growth, prudent expenditure management, and a foreign exchange gain of GH¢12.16 billion resulting from the appreciation of the Ghana cedi. The company's revenue increased from GH¢19.03 billion in 2024 to GH¢22.11 billion in 2025, supported by six nationwide revenue mobilization exercises that achieved a record single collection of GH¢2.045 billion.

The government's efforts to restore managerial discipline, improve accountability, and strengthen operational efficiency have been instrumental in ECG's financial recovery. The implementation of the Cash Waterfall Mechanism, coupled with the establishment of a single revenue account, has improved transparency, strengthened cash management, and reduced revenue leakages. Additionally, measures to reduce system losses and improve customer service are ongoing, with the company reporting monthly savings of about GH¢5.6 million by decoupling its electronic payment platforms and renegotiating key service contracts. The Energy Minister's address at the 28th Annual General Meeting (AGM) of ECG highlighted the importance of addressing technical and commercial losses, liquidity constraints, ageing infrastructure, and weak governance in the energy sector.

The financial recovery of ECG is crucial for the overall sustainability of the energy sector. The company's financial health directly affects power generation, transmission, and distribution, making it a key player in Ghana's electricity value chain. As the backbone of the country's electricity value chain, ECG's progress should be closely monitored by lawyers advising clients in the Ghanaian energy sector, who should also be aware of potential compliance exposures arising from the implementation of financial recovery reforms.

Lawyers advising clients in the Ghanaian energy sector should monitor ECG's progress and potential compliance exposures arising from the implementation of financial recovery reforms, including the establishment of a single revenue account and measures to reduce system losses.

Source: Original reporting via Ghanaian Times