Initiatives put in place as part of reforms to ensure a viable and financially healthy Electricity Company of Ghana (ECG) are already yielding results.
The reforms, which were rolled out last year, resulted in the restoration of financial discipline, strengthened accountability and governance principles and placed ECG on the path of growth.
Consequently, ECG is doing better with its financial obligations towards power producers, except independent power producer, Karpowership.
For instance, the company has, in 2025, managed to reduce its loss after tax from GHC8,255 million in 2024 to GHC2,521 million in 2025.
This was confirmed at the company's annual general meeting (AGM) in Accra yesterday.
The AGM was the first since 2018.
It was attended by representatives from the Ministry of Finance and the State Interest Governance Authority (SIGA), who represented the sole shareholder.
Also in attendance were representatives of the various stakeholders in the energy sector, such as the Public Utilities Regulatory Authority (PURC), GRIDCo, the Volta River Authority (VRA), independent power producers and the ECG Workers Union.
Healthy ECG, healthy sector
Addressing the meeting, the Deputy Minister of Energy and Green Transition, Richard Mensah, commended the company for that steady improvement and said the development had justified the government's resolve for reforms.
"Government has always believed that the financial health of ECG has a direct implication on the production, distribution and efficient service in the power sector.
"Without a financially healthy ECG, there can not be a sustainable energy sector," Mr Mensah said.
He said ECG had shown it had all it required to become not just a viable company in Ghana, but one of the best power companies in Africa. He emphasised the need to sustain the gains and turn them into real profitability.
The deputy minister also called on the company to improve its customer service, noting that customers were its greatest assets.
“As we strengthen our finances and improve infrastructure, there should also be an improved customer service to make the transformation complete because just as there will be no sustainable energy sector without ECG, the company cannot thrive without satisfied customers,” Mr Mensah stressed.
No dividend
In his statement, the Chairman of the Board of Directors of ECG, William Amuna, said in spite of the gains, the company was unable to pay dividends to its sole shareholder for the year 2025.
He stated that ECG's revenue grew by 16.2 per cent to GHC22,109 million, but its liabilities resulted in a loss after tax of GHC2,521.20 million in 2025, which was a significant improvement on the GHC8,255.80 million recorded in 2024.
"In view of the financial outcome for the year and the company's retained losses position, the Directors do not recommend the payment of dividend," Mr Amuna told the meeting.
Mr Amuna said the board acknowledged the need to restore the company's financial position and had thus supervised the implementation of the government's proposed reforms, which were already yielding results.
The board, he said, remained committed to implementing measures to strengthen ECG's long-term financial sustainability.
Mr Amuna further said the board had endorsed a four-channel strategy for debt reduction, tariff full cost recovery, loss reduction, improved collections and the growth of other income streams.
"This strategy has been endorsed by the board and is being actively pursued by management," the ECG Board chairman told the AGM.
Improvement
The Managing Director (MD) of ECG, Kwame Kpekpena, attributed the healthy financial situation of the company not just to the reforms being implemented, but also to some external factors such as those within its operating environment.
He said the stability of the cedi had resulted in a foreign exchange gain of GHC12,159 million.
Additionally, operational strategies implemented were resulting in strong performance across several key areas, notably its commercial footprint expanding with the total customer base reaching 5,851,762 by the end of the year, with an increment in prepaid users.
“Crucially, prepayment customers now make up the clear majority of our portfolio, reaching 53.49 per cent of our total base.
This deliberate structural shift delivers immediate operational advantages, directly accelerating our revenue collection, strengthening our working capital and significantly enhancing overall efficiency of our billing and collection workflows.
Giving an insight into its plan for the coming year, Mr Kpekpena said ECG hoped to achieve a stronger operational performance, setting a target of six priorities will continue to invest in our people, our safety culture and our digital platforms, building the organisational capability that underpins all other performances,” the ECG MD said.
