An audit conducted by PricewaterhouseCoopers (PwC) on the financial accounts of the Electricity Company of Ghana (ECG) for the fiscal year 2024 revealed an underreporting of GH¢5.3 billion. The audit identified a significant revenue discrepancy amounting to GH¢5,331,228,363 between the Cash Waterfall Mechanism (CWM) and the ECG’s Cash Settlement Platform Report.
The findings of the PwC report indicated that ECG had substantially under-reported its revenue to the regulatory authorities, exacerbating the financial challenges faced by the power sector.
While ECG’s financial records indicated revenue collections of GH¢15.8 billion for 2024, it officially declared only GH¢10.4 billion through the Cash Waterfall Mechanism, effectively concealing GH¢5.3 billion from the official financial statements.
This situation raises serious concerns regarding ECG’s financial management practices and the potential repercussions for Ghana’s already vulnerable energy sector, which has been grappling with liquidity issues, outstanding debts to Independent Power Producers, and inefficiencies in revenue collection.
Despite the under-declaration of revenue, ECG did not adequately fulfill its payment obligations to essential stakeholders within the power value chain, as highlighted in the PwC report.
From the GH¢10.4 billion that was officially declared, ECG managed to disburse only GH¢6.5 billion, resulting in a shortfall of GH¢3.9 billion that remains unaccounted for.
Additionally, discrepancies were noted between the tariff revenue collections recorded in the CWM, which amounted to GH¢10.44 billion for the period of January to December 2024, and the amounts validated through bank statements, which totaled GH¢15.53 billion.
