ECG Cancels Over 200 Contracts in Procurement Clean-Up
The Electricity Company of Ghana (ECG) has terminated 202 contracts deemed questionable, part of a wider effort to overhaul its procurement processes and ease financial pressures on the utility.
Acting managing director Julius Kpekpena told Parliament’s Energy Committee that the decision, backed by the board and the Ministry of Energy, followed a review of 347 contracts flagged for scrutiny.
“We identified about 347 contracts that we thought we would cancel so that we reduce our negatives for ECG and for the government. The board approved 202 outright terminations, and the rest we are working on doing additional due diligence to ensure that we can get out of those that we can terminate; we will terminate them,” Kpekpena said.
The clean-up forms part of a broader efficiency drive as ECG seeks to rein in costs and improve liquidity. The company has also renegotiated its agreement with payments platform Hubtel, lowering commission charges from 3 per cent to 1.65 per cent — a move Kpekpena described as a cost-saving measure with long-term benefits for both the utility and its customers.
The reforms coincide with a sharp improvement in revenue mobilisation. ECG collected GH₵1.74 billion ($115mn) in July 2025, its highest monthly intake on record. Kpekpena said tighter internal processes and efforts to close revenue leakages were paying off.
“This year, July, we had our highest ever revenue in the ECG collector — GH₵1.74 billion. It’s a record and we want to celebrate that,” he told the committee.
The company, however, continues to push for tariff restructuring, arguing that the current framework leaves distribution underfunded and threatens investment in infrastructure, despite the revenue gains.
