Chairperson of Parliament’s Public Accounts Committee (PAC), Abena Osei-Asare, has called on the Electricity Company of Ghana (ECG) to address issues of financial mismanagement before requesting further increases in electricity tariffs.
Her comments come after a PAC sitting uncovered significant budget overruns at ECG, as highlighted in the 2024 Auditor-General’s Report. The report revealed sharp increases in several expenditure lines: foreign training costs jumped from GHS 21 million to GHS 91 million, cleaning expenses rose from GHS 2.8 million to GHS 10.4 million, and consultancy fees climbed from GHS 40 million to GHS 58.6 million.
This comes despite a recent 1.14% tariff increase for all consumer categories effective October 1, 2025, under ECG’s quarterly review mechanism. The company has also proposed a 225% increase in its Distribution Service Charge for the 2025–2029 tariff period, pending approval from the Public Utilities Regulatory Commission (PURC).
Mrs. Osei-Asare disclosed that ECG had overspent its approved budget, saying:
“The confirmed budget was GHS 144 million, but they ended up spending a little over GHS 300 million — an excess of about GHS 189 million. We felt that they should clean their house first because they claim they need tariff increases to raise enough revenue to pay IPPs and meet other obligations.”
She also revealed that ECG had collected approximately GHS 11.9 billion through the Cash Waterfall Mechanism, the account used to pool revenues before payments are made to Independent Power Producers (IPPs).
Mrs. Osei-Asare emphasized that the PAC retains the powers of a high court and can summon any individuals linked to financial irregularities for explanations, even if those infractions occurred under previous administrations.
Commending some current CEOs and directors who have taken steps to address legacy financial issues, she cited the heads of the Minerals Income Investment Fund (MIIF) and the Northern Development Authority as examples of leaders demonstrating accountability.
She concluded by reaffirming PAC’s dedication to transparency, accountability, and fiscal discipline in public institutions, noting that effective oversight is vital to restoring public confidence in state-owned enterprises.
