ECG must address financial mismanagement before tariff increases — Abena Osei-Asare
The Chairperson of Parliament’s Public Accounts Committee (PAC), Abena Osei-Asare, has called on the Electricity Company of Ghana (ECG) to address financial mismanagement before requesting further tariff increases.
Her remarks followed a PAC sitting that reviewed the 2024 Auditor-General’s Report, which highlighted significant overspending by ECG.
The report showed that foreign training expenses surged from GHS21 million to GHS91 million, cleaning costs rose from GHS2.8 million to GHS10.4 million, and consultancy fees jumped from GHS40 million to GHS58.6 million.
Despite these overruns, electricity tariffs for all consumer categories were increased by 1.14% on October 1, 2025, under ECG’s quarterly review mechanism.
The company is also seeking approval from the Public Utilities Regulatory Commission (PURC) for a proposed 225% hike in its Distribution Service Charge for the 2025–2029 tariff period.
In an interview, Mrs. Osei-Asare confirmed that ECG had spent far above its approved budget.
She explained, “The approved budget was GHS144 million, but they ended up spending over GHS300 million, an excess of about GHS189 million. We believe ECG must clean its house before asking consumers for more money.”
She further revealed that ECG had collected approximately GHS11.9 billion in its Cash Waterfall Mechanism account, which pools revenues before disbursement to Independent Power Producers (IPPs).
She added, “Many current officials were not responsible for past irregularities. If needed, PAC has powers equivalent to a high court and can summon individuals to account for these infractions.”
Mrs. Osei-Asare also commended some executives who have proactively addressed legacy financial issues despite not being responsible for them, citing examples from the MIIF and Northern Development Authority.
“A few CEOs and DGs have shown strong commitment to correcting past errors, even though they assumed office only recently,” she noted.