ACEP urges PURC to tighten oversight on ECG amid rising losses and exchange rate manipulations
The Africa Centre for Energy Policy (ACEP) has asked PURC to fully enforce its regulatory oversight of ECG by implementing strict measures to track revenue collection and spending, ensuring transparency in payments to value chain participants and sector expenditures.
ACEP also recommends an immediate audit of the Hubtel contract to resolve payment discrepancies.
At a press conference titled “ECG’s Galamsey on Ghana’s Budget Reaches a Crescendo,” ACEP’s Policy Lead, Kodzo Yaotse, called for the replacement of ECG’s management with competent and transparent leaders to alleviate the financial strain on the state. ACEP pointed out that political inaction continues to hinder ECG’s ability to deliver value, with the Energy Sector Recovery Program (ESRP) estimating power sector shortfalls of US$8.25 billion between 2019 and 2023.
ECG’s inefficiency has forced the public to subsidize its operations, despite ongoing IMF efforts to address the company’s financial issues since 2022. Losses skyrocketed from GHS 295 million in 2017 to GHS 9.7 billion in 2022. Recent PURC reports show under-recoveries between August 2023 and July 2024 amounted to GHS 13.6 billion, with an average collection rate of only 43%.
ACEP criticized ECG’s digitalization efforts, specifically the switch from the “ECG Power” app to the new “ECG PowerApp” in 2023, labeling it a procurement-driven decision rather than a genuine efficiency measure. ECG’s handling of 61 accounts across 16 banks, hidden from auditors, further reflects its lack of transparency, ACEP said.
Yaotse also highlighted ECG’s manipulation of exchange rates, resulting in a GHS 6.5 billion net loss in 2022 and GHS 7 billion in 2023. These manipulations hinder ECG’s ability to pay value chain participants and divert public resources.
The growing financial burden threatens to undo progress made through Ghana’s debt restructuring, pushing the country toward another debt crisis. IPPs and gas suppliers continue to demand payments, increasing pressure on the government to divert funds from social investments.
