The financial performance of the Electricity Company of Ghana (ECG) came under scrutiny at the Public Accounts Committee (PAC) as members questioned the company’s management over reported losses exceeding GH¢7 million.
The concerns emerged on Friday, October 17, 2026, when the committee continued its examination of the Auditor-General’s Report for the year ending 2024, focusing on the factors contributing to ECG’s financial difficulties and measures being implemented to improve its position.
Committee members questioned ECG officials about the causes of the reported losses and what the company was doing to strengthen its finances and ensure long-term financial sustainability.
Responding to the concerns, ECG Managing Director, Ing. Julius Kwame Kpekpena, said the government was taking steps to reduce the cost of electricity purchases, which he identified as a major factor driving the company’s costs.
“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 added that the introduction of competitive procurement for additional electricity generation was another measure intended to lower production costs.
“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 electricity tariffs, with ECG indicating that tariff adjustments might be necessary to enable the company to break even and improve its financial sustainability.
The discussions form part of the committee’s ongoing review of the Auditor-General’s findings and efforts to ensure accountability in the management of public resources.
Source: Citinewsroom
