The Electricity Company of Ghana (ECG) recorded a loss after tax of GH¢2.52 billion for the 2025 financial year as the state-owned power distributor continued to face pressure from the high cost of purchasing electricity despite higher revenue.
The loss was driven largely by electricity purchase costs of GH¢34.8 billion, which exceeded revenue of GH¢22.11 billion and resulted in a gross loss of GH¢12.7 billion. The absence of the GH¢17 billion government grant received in 2024 also contributed to the company's return to a loss after posting a profit in the previous year.
The audited financial statements showed that revenue increased by 16.2 per cent from GH¢19.03 billion in 2024 to GH¢22.11 billion in 2025.
The loss after tax, however, improved from GH¢8.26 billion in 2024 to GH¢2.52 billion, supported by a GH¢12.2 billion foreign exchange gain following the appreciation of the Ghana cedi against foreign currency-denominated debt.
Performance
Presenting the Managing Director's Report, the Managing Director of ECG, Kwame Kpekpena, said 2025 marked the first year of implementing the company's 2025 to 2029 corporate strategy.
He said management carried out six revenue mobilisation exercises that produced a record single collection of GH¢2.045 billion, decoupled electronic payment platforms to save GH¢5.6 million each month, renegotiated key service contracts and concluded the Power Distribution Services (PDS) arbitration.
The report stated that the successful conclusion of the PDS arbitration helped ECG to avoid a potential liability exceeding US$300 million, reducing a major financial risk facing the company.
"We remain focused on improving collections, managing costs and strengthening the company's finances. The measures we implement are aimed at restoring sustainability while maintaining reliable electricity supply," he said.
Debt
The company's financial statements showed that total assets increased by 8.5 per cent to GH¢82.75 billion at the end of 2025.
Long-term borrowings rose sharply from GH¢2.6 billion in 2024 to GH¢21.91 billion. ECG attributed the increase mainly to a change in the accounting treatment of government grants, reflecting non-cash transactions in which the government settled legacy obligations owed to independent power producers and fuel suppliers on behalf of the company.
Operating activities generated a cash outflow of GH¢12.5 billion, while trade receivables increased from GH¢15.1 billion to GH¢20.1 billion, indicating that more customers owed the company at the end of the year.
Supplier obligations also climbed to GH¢46.7 billion, largely comprising amounts owed to independent power producers.
Outlook
ECG's total equity declined from GH¢5.25 billion in 2024 to GH¢438 million in 2025, while accumulated losses reached GH¢27.5 billion.
The company said the movement in equity was largely due to lower valuation rates applied to property, plant and equipment following improved macroeconomic conditions, particularly the appreciation of the Ghana cedi.