By Jibril Abdul Mumuni
Accra, July 31, GNA–The Electricity Company of Ghana (ECG) has reduced its annual loss by 69.5 per cent, recording a loss after tax of GHS2.52 billion in 2025 compared with GHS8.26 billion in 2024.
The improved performance was driven by higher revenue, cost-saving measures, contract renegotiations and a strong foreign exchange gain from the appreciation of the Ghana cedi.
Mr Kwame Kpekpena, Managing Director of ECG, disclosed this at the company’s 28th Annual General Meeting in Accra.
The meeting also cleared a backlog of financial statements, with the company presenting audited accounts for the first time since 2018.
The latest results come as ECG implements reforms aimed at improving governance, efficiency and financial performance.
According to the audited report, ECG’s total revenue increased by 16.2 per cent from GHS19.03 billion in 2024 to GHS22.11 billion in 2025. Revenue from electricity sales rose by 16.5 per cent to GHS20.84 billion and accounted for more than 94 per cent of total revenue.
Despite the improvement, the company still faces financial challenges.
The cost of purchasing and distributing electricity remained higher than revenue, resulting in a gross loss of GHS12.66 billion. Cost of sales increased from GHS31.47 billion in 2024 to GHS34.77 billion in 2025.
The report also showed that ECG’s total assets grew by 8.5 per cent to GHS82.75 billion. However, total equity fell sharply from GHS5.25 billion to GHS438 million, mainly due to lower property revaluation gains following improvements in the country’s economic conditions.
Mr Kpekpena said the reduction in losses was largely due to a foreign exchange gain of GHS12.16 billion in 2025, compared with a foreign exchange loss of GHS8.84 billion in 2024.
He explained that the stronger cedi reduced the value of ECG’s foreign currency liabilities, especially debts linked to power purchases and loans.
He said the 2025 results reflected deliberate efforts by management to stabilise and transform the company.
“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.
ECG also saved about GHS13.2 million every month after renegotiating its payment services contract with Hubtel.
In addition, the termination of underperforming supply contracts generated estimated savings of US$227.6 million.
The company’s customer base grew from 5.52 million to 5.85 million, representing an increase of 5.9 per cent.
New service connections rose by 31.3 per cent to 222,979, while prepaid customers became the majority, accounting for 53.5 per cent of all customers.
System losses also improved slightly, falling from 27.05 per cent in 2024 to 26.88 per cent in 2025.
Ing. William Amuna, Board Chairman of ECG, said the company had adopted a four-point strategy to improve its long-term financial position.
The strategy focuses on achieving full cost-recovery tariffs, reducing system losses, improving revenue collection and increasing non-tariff income.
He said improved revenue, debt reduction efforts and compliance with the Cash Waterfall Mechanism had strengthened liquidity in the energy sector and helped reduce amounts owed to Independent Power Producers by 35 per cent compared to 2024.
GNA
Reporter: Jibril Abdul Mumuni
Email [email protected]
Edited by Samuel Osei-Frempong