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The Electricity Company of Ghana (ECG) has reported a staggering loss of GH¢10.21 billion in 2022, an increase from the GH¢1.91 billion loss recorded in 2021.
This represents a more than 433 per cent increase in losses, largely attributed to exchange rate losses from the cedi’s depreciation and the rising cost of distributing power to consumers.
These losses were detailed in the latest Auditor General’s Report on the accounts of public boards, corporations, and other statutory institutions for 2023. Despite the financial turmoil, ECG’s income saw a 24.1 per cent increase, rising to GH¢15.03 billion in 2022 from GH¢12.10 billion in 2021.
This increase was mainly due to increased internally generated funds and government grants paid to power-producing companies on behalf of ECG.
However, the company’s total expenditure skyrocketed by 80 per cent to GH¢25.23 billion in 2022 from GH¢14.02 billion in 2021, driven by higher costs of power purchased, transmission costs, and foreign exchange losses.
The report also highlighted an increase in non-current assets by 45.6 per cent to GH¢32.71 billion due to revaluation and additional procurement of property, plant, and equipment.
The Auditor-General, Johnson Akuamoah Asiedu, noted several operational inefficiencies during a physical inspection, including grounded freightliner trucks valued at $100,000 in the Eastern Regional Office, which lacked damage evaluation reports.
He urged ECG management to repair these trucks promptly to prevent further deterioration.
The audit found discrepancies in bank reconciliation statements, with GH¢10.94 million in credit transactions not identified in the cashbooks of the Accra East Region. The report recommended immediate investigation to allocate the amount correctly and prevent overstatement of receivables.
