The Electricity Company of Ghana (ECG) faced tough questions from Parliament’s Public Accounts Committee (PAC) on Friday over reported losses exceeding GH¢7 million, as lawmakers pressed the utility provider on the root causes of its financial distress and the viability of its recovery plans .
The scrutiny came as the committee continued its examination of the Auditor-General’s Report for the financial year ending 2024, focusing on the factors driving ECG’s persistent financial difficulties .
Management Points to Power Purchase Costs
Appearing before the committee, ECG Managing Director Ing. Julius Kwame Kpekpena identified the cost of purchasing electricity as the primary driver of the company’s expenditure, pointing to ongoing government efforts to renegotiate terms with Independent Power Producers (IPPs).
“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,” Kpekpena told the committee .
He also cited the introduction of competitive procurement for additional electricity generation as a structural measure intended to lower production costs. “The cost at which we buy the power is what is driving the cost,” he said .
Tariff Adjustments Floated
The committee also examined the role of electricity tariffs in ECG’s financial position. According to accounts of the proceedings, ECG indicated that tariff adjustments might be necessary to enable the company to break even and improve its long-term financial sustainability .
The discussions form part of the PAC’s broader review of the Auditor-General’s findings and its mandate to ensure accountability in the management of public resources .
Wider Context of Financial Pressure
The GH¢7 million figure under scrutiny at the PAC sits against a backdrop of far larger financial challenges at the state power distributor. An International Monetary Fund report published in September 2026 found that ECG accounted for approximately 85% of the GH¢8.8 billion in combined net losses recorded by ten state-owned enterprises in 2024—a loss equivalent to about 0.7% of Ghana’s GDP .
The Auditor-General’s 2024 report also identified ECG as the state institution with the largest unpaid tax bill, at GH¢1.4 billion . Separately, the company has faced questions over unapproved expenditures from prior years, including a GH¢170 million overspend across 13 budget lines without board approval during the 2023 financial year .
The PAC’s examination of ECG is expected to continue as the committee works through the Auditor-General’s findings, with the utility’s power purchase agreements and tariff structure remaining central to the accountability debate.
