In 2021, the Electricity Company of Ghana (ECG) experienced a significant decline in its financial performance, recording a loss of ¢1.913 billion, compared to a profit of ¢822.549 million in the previous year.

This signifies a substantial deterioration of 332.7% in the company's financial standing.

Based on the 2022 Auditor General Report, the company's total income saw a reduction of 13.7%, reaching ¢12.104 billion in 2021.

This decline in total income was primarily due to a decrease in government grants, which were payments made by the government to power generating entities on behalf of the Electricity Company of Ghana.

Additionally, the company incurred a direct cost of ¢12.104 billion in 2021, a decrease from the ¢14.03 billion recorded in 2020. However, the total expenditure witnessed a 6.1% increase, rising from ¢13.210 billion in 2020 to ¢14.018 billion in 2021.

This rise was largely attributed to higher expenses related to power purchases and transmission costs during the reviewed year.

Regarding its balance sheet, the company witnessed a 9.7% surge in Non-Current Assets, climbing from ¢20.468 billion in 2020 to ¢22.461 billion in 2021. This elevation was attributed to gains recognized through asset revaluation and the acquisition of additional property, plant, and equipment throughout the year.

Furthermore, there was a 2.2% uptick in current Assets, ascending from ¢8.064 billion in 2020 to ¢8.241 billion in 2021, primarily due to an increase in trade and other receivables.

Conversely, Current Liabilities experienced a notable 21.5% rise, advancing from ¢14.566 billion in 2020 to ¢17.698 billion in 2021, driven by an upsurge in trade and other payables.

The current ratio witnessed a decline from 0.6:1 in 2020 to 0.5:1 in 2021, indicating the company's challenge in meeting its short-term financial obligations.