Ghana: Afenyo-Markin Calls For ECG Reforms To Curb Losses, Ease Burden On Consumers

Former Electricity Company of Ghana (ECG) Board Chairman Hon. Alexander Kwamena Afenyo-Markin has proposed three measures to improve the state-owned utility’s finances and operations, urging it to address inefficiencies before seeking further tariff increases.

In a Facebook post on Sunday, Afenyo-Markin, the minority leader in Ghana’s parliament, called for strict enforcement of the revised Cash Waterfall Mechanism, renegotiation of legacy take-or-pay power purchase agreements and automatic monthly deductions by the finance ministry to settle debts owed to ECG by public institutions.

He said ECG’s difficulties stemmed from systemic inefficiencies that required a national dialogue on structural reform rather than partisan blame.

Consumers had faced cumulative tariff increases exceeding 28% over the past 19 months without the underlying structural problems being resolved, he said.

Citing ECG’s financial results, Afenyo-Markin said its loss after tax narrowed to GH¢2.52 billion in 2025 from GH¢8.25 billion in 2024, a reduction of nearly 70%. Revenue rose to GH¢22.1 billion from GH¢19.6 billion.

New connections increased by 31.3% to 222,979, while prepaid customers accounted for 53.5% of the customer base, he said.

Afenyo-Markin described the improvements as real but not yet secure, urging ECG to plug revenue leakages before seeking tariff increases or new levies.

“Reform has achieved what tariff increases alone could not,” he said.

He also called for tighter spending controls and the retention of procurement reforms introduced during his tenure.

Afenyo-Markin said that when he became chairman, vendors could present bills of lading for goods delivered to the port without adequate verification of the consignments.

The arrangement left ECG with financial obligations before taking custody of the goods, exposing it to mounting port charges, delays and the risk of loss, damage or disputes, he said.

“I led the Board to tie contractual completion and payment to verified delivery at ECG’s own facilities,” he said.

“That reform must be sustained,” he said

He urged full implementation of ECG’s Loss Reduction Programme, including boundary metering, smart prepaid meters and systematic electricity theft detection.

These measures, alongside strict enforcement of the Cash Waterfall Mechanism, would help recover lost revenue and reduce the need to pass costs on to consumers through higher tariffs, he said.

Afenyo-Markin also commended ECG Managing Director Kwame Kpekpena and his team for recently convening a luncheon for former managing directors and board chairpersons to share ideas on improving the utility’s performance.