The Electricity Company of Ghana (ECG) recorded a GH¢2.5 billion loss in 2025, highlighting the growing financial pressure facing the country's main electricity distributor.

According to the company's audited financial statements, ECG's revenue increased to GH¢22.1 billion in 2025 from GH¢19 billion the previous year. However, the gains were wiped out by the high cost of purchasing electricity.

ECG spent GH¢34.8 billion on power purchases during the year, resulting in a gross loss of GH¢12.7 billion.

The company also lost the benefit of government support it received in 2024. While ECG received a GH¢17 billion government grant that year and recorded a profit, no such support was provided in 2025.

The report showed that ECG's operating loss stood at GH¢14.4 billion. However, a GH¢12.2 billion foreign exchange gain, mainly due to the appreciation of the Ghana cedi against its foreign currency-denominated debt, helped reduce the final loss.

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After taxes and other expenses, ECG ended 2025 with an after-tax loss of GH¢2.52 billion.

The company's financial challenges were also reflected in its cash position, as it recorded a GH¢12.5 billion cash outflow from operating activities during the year.

ECG's debt levels increased significantly, with long-term borrowings rising to GH¢21.9 billion from GH¢2.6 billion in 2024 after securing about GH¢21 billion in new loans.

At the same time, money owed to ECG by customers increased from GH¢15.1 billion to GH¢20.1 billion, while the company's outstanding obligations to suppliers, mainly independent power producers, rose to GH¢46.7 billion.

ECG's equity position also weakened sharply, falling from GH¢5.25 billion to GH¢438 million, while its accumulated deficit reached GH¢27.5 billion.

The Ghana Audit Service, which reviewed the accounts, issued an unqualified opinion, indicating that the financial statements present a true and fair view of the company's financial position.

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The latest figures come at a time when the government is pushing reforms in the energy sector, including plans to introduce private sector participation in ECG by 2027.

Finance Minister Dr Cassiel Ato Forson has said reforms of state-owned enterprises are necessary to address rising energy sector debt, while organised labour has raised concerns over private sector involvement in ECG.

The financial strain comes despite the government's efforts to raise funds through the Energy Sector Shortfall and Debt Repayment Levy, which generated GH¢8.81 billion in 2025. However, GH¢22.67 billion was spent during the same period to settle energy sector debts and financing shortfalls.

DR/MA