The financial position of the Electricity Company of Ghana (ECG) has come under intense scrutiny at Parliament’s Public Accounts Committee (PAC), where members questioned the utility company’s management over reported losses exceeding GH¢7 million.
The concerns arose on Friday, October 17, 2026, as the committee continued its review of the Auditor General’s Report for the financial year ending 2024. The examination focused on the factors contributing to ECG’s financial difficulties and the measures being pursued to restore its financial stability.
During the proceedings, committee members sought explanations from company officials regarding the circumstances behind the reported losses and the steps being taken to strengthen ECG’s financial position and ensure its long term sustainability.
Responding to the concerns, ECG Managing Director, Ing. Julius Kwame Kpekpena, explained that the government had initiated measures to reduce the cost of electricity purchases, which he identified as a major contributor to the company’s expenditure.
He disclosed that negotiations with independent power producers (IPPs) had resulted in substantial discounts intended to ease the financial burden associated with purchasing electricity.
“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.
Ing. Kpekpena further indicated that the introduction of competitive procurement arrangements for additional electricity generation was another measure designed to reduce production costs.
He explained that the legal framework for competitive procurement was intended to encourage more cost effective electricity generation and help address the high prices ECG pays for power supplied to the national grid.
“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 considered the role of electricity tariffs in ECG’s financial difficulties. Discussions suggested that tariff adjustments might be necessary to enable the company to cover its operational expenses, reach a break even position and improve its financial sustainability.
The proceedings form part of Parliament’s broader examination of the Auditor General’s findings and its efforts to promote accountability, strengthen financial management and ensure the prudent use of public resources.
The outcome of the review is expected to place further attention on ECG’s expenditure, electricity purchasing arrangements and the measures required to address its financial challenges.
