The Electricity Company of Ghana (ECG) faced a staggering loss of GH¢10.21 billion in 2022, a sharp increase from the GH¢1.91 billion loss recorded in 2021.

This represents an over 433 percent surge in losses for 2022, primarily driven by exchange rate losses due to the depreciation of the cedi and rising costs of power distribution.

At the same time, many consumers across the country reported sporadic power outages, leading to extended periods of darkness and disruptions in their daily routines.

These financial losses were detailed in the most recent Auditor General’s Report covering public boards, corporations, and statutory institutions for 2023.

During the review period, ECG’s revenue rose by 24.1 percent to GH¢15.03 billion in 2022, up from GH¢12.10 billion in 2021, due to increased internal funds and government grants.

These grants were payments made by the government to energy-producing companies on behalf of ECG.

Total expenditures surged by 80 percent to GH¢25.23 billion in 2022 from GH¢14.02 billion in 2021, primarily due to increased direct costs and foreign exchange losses.

The rise in direct costs was mainly due to higher costs of power purchases and transmission expenses.

Non-current assets saw a 45.6 percent increase to GH¢32.71 billion in 2022 from GH¢22.46 billion in 2021, attributed to asset revaluations and new acquisitions of property, plant, and equipment.

Current assets also grew by 23.1 percent to GH¢10.14 billion in 2022 from GH¢8.24 billion in 2021, driven by an increase in trade and other receivables.

The company's liabilities rose by 66.3 percent to GH¢29.43 billion in 2022 from GH¢17.69 billion in 2021, mainly due to higher trade and other payables. Non-current liabilities increased by 16.4 percent to GH¢6.37 billion in 2022 from GH¢5.47 billion in 2021.

The report noted a decline in the current ratio to 0.3:1 in 2022 from 0.5:1 in 2021, indicating ongoing challenges in meeting short-term financial obligations.