Accra, Ghana – In a troubling revelation for the nation’s energy sector, Ghana’s Electricity Company (ECG) is grappling with unprecedented power losses. The Energy Commission’s latest report indicates that ECG’s losses soared to a two-decade high in 2024, with a staggering 32% of total electricity purchases vanishing without revenue. This surge in ECG power losses raises urgent questions about the utility’s operational efficiency and its impact on Ghanaian households.

The Energy Commission report details how ECG purchased 17,009 GWh of electricity in 2024, but only managed to sell 11,561 GWh. The remaining 5,448 GWh, equivalent to 32% of the total, was lost to a combination of technical and commercial factors. According to the Energy Commission, this is the highest loss rate the company has recorded in over 20 years. This is a financial drain and a potential threat to Ghana’s energy security.

These ECG power losses are attributed to a mix of technical and commercial issues. Technical losses can stem from inefficiencies in transmission and distribution infrastructure, while commercial losses often involve power theft, billing discrepancies, and faulty metering systems, according to the Energy Commission’s Report. JoyNews Research estimates that the lost electricity could have powered approximately 1.36 million Ghanaian households for an entire year, assuming an average monthly consumption of 300–400 kWh per household.

The Northern Electricity Distribution Company (NEDCo) faces similar challenges, with losses totaling 669 GWh, representing a loss rate of about 31% in 2024, according to the Energy Commission’s Report. This mirrors ECG’s struggles and highlights systemic issues within Ghana’s power distribution network.

In stark contrast, the Enclave Power Company (EPC) demonstrates a different model. EPC has consistently maintained a remarkably low loss rate, averaging just 2.5% between 2015 and 2024, according to the Energy Commission’s Report. This illustrates the potential benefits of private-sector involvement and focused management in power distribution, offering a benchmark for ECG to consider.

Ghana’s electricity consumption has witnessed substantial growth, with average annual growth rate of 6.5% since 2000, as detailed in the Energy Commission’s Report. Electricity purchases by all distribution utilities have surged from 4,319 GWh in 2000 to 19,458 GWh in 2024, nearly quadrupling. Sales have followed a similar trajectory, increasing from 3,142 GWh to 13,098 GWh over the same period.

As of 2024, Ghana’s total installed generation capacity reached 5,749 MW, according to the Energy Commission’s Report. Thermal sources account for 70% of this capacity, with a dependable capacity of 3,695 MW out of a total 5,211 MW. Hydro capacity, on the other hand, has seen only modest growth since 2000, remaining relatively stagnant.

These ECG power losses can have several consequences for the people of Ghana. High power losses translate to increased costs for consumers, as utilities seek to recoup lost revenue. They also undermine the reliability of the electricity supply, potentially leading to more frequent outages and disruptions. Ultimately, these issues can negatively impact economic growth and development, hindering Ghana’s progress.

Addressing ECG power losses requires a multi-pronged strategy. This includes investing in upgrading transmission and distribution infrastructure to reduce technical losses. Implementing stricter measures to combat power theft and improve billing and metering systems to address commercial losses are also crucial. Enhanced monitoring and detection of both technical and commercial losses will enable more targeted interventions.

The Enclave Power Company’s success demonstrates the potential of private-sector involvement in achieving efficient power distribution. Exploring public-private partnerships may offer innovative solutions and attract much-needed investments to reduce losses and strengthen Ghana’s energy sector. This approach could bring expertise and resources to address the challenges facing ECG and NEDCo.

The Energy Commission’s report serves as a stark reminder of the urgent need to address ECG’s escalating power losses. The 32% loss rate represents a major financial setback with significant implications for Ghanaian households and the nation’s energy security. While technical issues, power theft, and billing irregularities are contributing factors, the contrast with the Enclave Power Company’s performance underscores the potential for improvement. Tackling these losses demands a comprehensive strategy encompassing infrastructure upgrades, stricter enforcement, and greater private-sector collaboration. Ghana’s energy future depends on effectively resolving these challenges and ensuring a more dependable and efficient power supply.