Electricity Company of Ghana blames 80% of GHc1.9 billion losses on cedi depreciation

Electricity Company of Ghana blames 80% of GHc1.9 billion losses on cedi depreciation.

The Managing Director of the Electricity Company of Ghana (ECG), Samuel Dubik Mahama, has attributed approximately 80 percent of the company’s financial losses to the depreciation of the Ghanaian Cedi.

According to the Auditor General’s report, state power distributors generated a profit of 822 million cedis in 2020. However, it revealed that the ECG recorded a loss of GH¢1.9 billion in 2021.

During his testimony before the Public Accounts Committee (PAC) on Tuesday, February 13, Mr. Mahama elucidated that the power distributor purchases electricity in dollars and subsequently sells it in cedis.

“The forex losses alone for the year is something that we have to look at in terms of our business. Forex losses are what culminates in over 80 percent of the losses that you are seeing.”

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“ECG sells electricity, so we will do our best to sell enough to reduce our commercial losses to the best of our ability to see how we can close that gap.”