ECG is Missing Billions – Ghana’s Power Sector Crisis Deepens as ECG Under-Declares Billions
A forensic audit by PricewaterhouseCoopers (PwC) has exposed a GHS 5.3 billion revenue shortfall at the Electricity Company of Ghana (ECG) in 2024 alone. The findings highlight severe financial mismanagement, worsening the power sector’s liquidity crisis and threatening supply stability.
The audit, which follows an earlier PwC review identifying GHS 567 million in discrepancies for late 2023, points to chronic inefficiencies or deliberate misreporting within ECG’s revenue collection system.
ECG’s Revenue Leakages and Structural Issues
PwC identified 99 different bank accounts and 21 separate billing systems (20 legacy systems and one modern platform), creating complexity and oversight challenges. The report suggests ECG’s revenue collection through third-party vendors often leads to delays and discrepancies in its official accounts.
“ECG’s system for tracking revenue remains fragmented… making financial oversight difficult,” the report stated.
Despite its liquidity struggles, ECG prioritized commission payments to a revenue collection vendor amounting to GHS 402.59 million, nearly equaling payments made to major power producers such as VRA (GHS 412 million) and Bui Power Authority (GHS 323 million).
Impact on Ghana’s Energy Sector
The Cash Waterfall Mechanism (CWM), designed to ensure fair revenue distribution, was reportedly undermined as ECG deducted vendor commissions before full revenue declarations.
PwC’s findings confirm that previous financial irregularities—such as GHS 136 million in emergency fuel purchases in late 2023—have only worsened, raising questions about ECG’s financial governance.
The Risk of Load Shedding (“Dumsor”)
ECG’s role as the main buyer of power from state-owned and private generators means its financial health directly affects power supply stability. If revenue leakages continue, power producers may be forced to scale back generation, potentially plunging Ghana back into widespread load shedding (“dumsor”).
The findings expose a critical need for financial discipline, stronger regulatory oversight, and strategic reforms to prevent a full-blown energy crisis.
Source: 3news