- ECG reviewed 347 contracts and terminated 202 to cut costs.
- The move was approved by the company’s board and the Ministry of Energy.
- Remaining contracts are under further assessment for possible cancellation.
- ECG renegotiated its Hubtel deal, cutting commission from 3% to 1.65%.
- The company recorded its highest monthly revenue ever: GH₵1.74 billion in July 2025.
- Leadership says the focus is on cost reduction, operational efficiency, and easing pressure on government finances.
The Electricity Company of Ghana (ECG) has launched a sweeping cost-cutting campaign that has seen the cancellation of more than half of its scrutinized contracts. The exercise, sanctioned by the Ministry of Energy and the company’s board, is designed to reduce financial pressures and streamline operations.
Acting Managing Director Ing. Julius Kpekpena told Parliament’s Energy Committee that 202 out of 347 flagged contracts have already been scrapped, while the remainder are undergoing further review for possible exit. He described the initiative as a necessary step to shield both ECG and government finances from unnecessary strain.
Alongside the contract purge, ECG has also restructured its agreement with Hubtel, its digital payment partner, reducing commission charges from 3% to 1.65%. The revised terms are expected to generate significant savings over the long term and enhance efficiency in revenue collection.
Despite the aggressive cuts, ECG’s financial health is showing strong signs of improvement. In July 2025, the company posted GH₵1.74 billion in revenue — the highest monthly figure in its history. The milestone, according to management, is the result of tighter internal controls and improved collections.
The reforms, which combine aggressive cost management with improved operational efficiency, mark one of ECG’s most determined efforts in recent years to stabilize its finances and reduce its dependence on government support.
