The Electricity Company of Ghana (ECG) has experienced a significant financial loss in 2022, totaling GH¢10.21 billion, which is a stark increase from the GH¢1.91 billion loss recorded in 2021. This steep rise in losses, amounting to over 433 per cent, can be attributed to exchange rate fluctuations and the rising cost of power distribution.
Complaints from consumers across the country have highlighted issues with intermittent power supply, leading to prolonged periods of darkness and disruptions in daily life. The latest Auditor General’s Report on the account of public boards, corporations, and other statutory institutions in 2023 captured ECG’s staggering losses.
Despite an increase in income by 24.1 per cent to GH¢15.03 billion in 2022, the company’s total expenditure rose by 80 per cent to GH¢25.23 billion, mainly due to direct costs and foreign exchange losses. The increase in direct cost was primarily driven by higher costs of power purchases and transmission.
Non-current assets saw a 45.6 per cent improvement to GH¢32.71 billion in 2022, while current assets also increased by 23.1 per cent to GH¢10.14 billion. However, liabilities surged by 66.3 per cent to GH¢29.43 billion, with current liabilities making up a significant portion.
The Auditor-General highlighted the need for proper control systems to prevent theft, loss, wastage, and misuse of assets, as seen through instances like faulty trucks and unaccounted credit transactions. These lapses could lead to overstatements and hinder operational efficiency.
