Inefficiencies at ECG costing the nation heavily - Finance Minister

Finance Minister, Dr Cassiel Ato Forson, has highlighted the Electricity Company of Ghana (ECG) as a central figure in the country’s financial crisis, draining billions from the national budget due to inefficiencies and significant revenue losses.

Speaking on the 2025 National Economic Dialogue, Dr Forson described ECG's operations as unsustainable and warned that without urgent reforms, the nation’s energy sector could collapse under mounting debts.

Dr Forson revealed that ECG only collects 62 per cent of the total electricity it distributes, leaving nearly 40 per cent of the power supplied either lost or unpaid for.

He further noted that this revenue gap has forced the government to repeatedly bail out the company, with budget transfers amounting to $2.1 billion over the past two years.

“The inefficiencies at ECG are costing the nation dearly. Government transfers to support the energy sector have reached unsustainable levels, yet the company continues to struggle with revenue collection and operational inefficiencies,” he said.

He warned that by 2026, the cumulative shortfall in the energy sector is projected to exceed $9 billion, positioning it as one of the biggest threats to Ghana's economic stability.

Dr Forson outlined key challenges, including high distribution losses, non-payment of bills, and poor cash management.

“The power sector should be a key driver of industrial growth, but instead, it has become a financial black hole, dragging down the entire economy,” he stated.

He also expressed concern over electricity tariff pricing, noting that while current tariffs do not reflect the true cost of electricity, simply raising prices is not the solution.

“Consumers cannot be forced to pay higher tariffs to cover ECG’s inefficiencies. Instead, we must address the root causes—inefficient billing, high system losses, and poor financial management,” Dr Forson added.