The Minister of Energy and Green Transition, Dr John Abdulai Jinapor, has said the Electricity Company of Ghana (ECG) is on the path to financial recovery following reforms aimed at strengthening governance, improving revenue mobilisation and enhancing operational efficiency.

He noted that the measures had begun yielding positive results, with the company recording stronger revenue collection, improved financial discipline and greater transparency, while positioning it to become a commercially viable electricity distribution utility.

The minister’s address was delivered on his behalf by the Deputy Minister of Energy and Green Transition and Member of Parliament for Gomoa West, Richard Gyan Mensah, at the 28th Annual General Meeting (AGM) of the ECG in Accra yesterday.

Dr Jinapor described ECG as the backbone of Ghana’s electricity value chain, explaining that its financial health directly affected power generation, transmission and the overall sustainability of the energy sector.

According to him, government inherited an energy sector burdened by persistent technical and commercial losses, liquidity constraints, ageing infrastructure and weak governance, prompting reforms to restore managerial discipline, improve accountability and strengthen operational efficiency.

He observed that the implementation of the Cash Waterfall Mechanism, coupled with the establishment of a single revenue account, had improved transparency, strengthened cash management and reduced revenue leakages. He also urged ECG to intensify efforts to tackle illegal electricity connections, reduce system losses and improve customer service.

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Presenting the company’s 2025 performance, the Managing Director of ECG, Kwame Kpekpena, reported that the company’s loss after tax narrowed significantly from GH¢8.26 billion in 2024 to GH¢2.52 billion in 2025.

He attributed the improvement to revenue growth, prudent expenditure management and a foreign exchange gain of GH¢12.16 billion resulting from the appreciation of the Ghana cedi.

He said revenue increased from GH¢19.03 billion in 2024 to GH¢22.11 billion in 2025, supported by six nationwide revenue mobilisation exercises that achieved a record single collection of GH¢2.045 billion.

Kpekpena disclosed that ECG also generated monthly savings of about GH¢5.6 million by decoupling its electronic payment platforms, renegotiated key service contracts and successfully concluded the Power Distribution Services arbitration, avoiding substantial financial liabilities.

Operational performance also improved during the year, with the customer base growing by 5.92 per cent to 5.85 million, while new electricity connections increased by 31.3 per cent to 222,979.

The average connection period reduced from 56.43 days to 39.98 days.

Despite the gains, the Managing Director acknowledged that total system losses only declined marginally from 27.05 per cent to 26.88 per cent, describing the level as unacceptably high.