An audit report carried out by PricewaterhouseCoopers (PwC) on the accounts of the Electricity Company of Ghana (ECG) for the 2024 financial year uncovered that GH¢5.3 billion was under declared.
PwC’s audit found that there was a total GH¢5,331,228,363 revenue discrepancy between the Cash Waterfall Mechanism (CWM) and the ECG’s Cash Settlement Platform Report.
According to the PwC report, ECG significantly under-reported its revenue to the regulator, further compounding the financial instability of the power sector.
The audit found that while ECG’s accounts showed revenue collections of GH¢15.8 billion in 2024, it only declared GH¢10.4 billion the Cash Waterfall Mechanism, effectively hiding GH¢5.3 billion from official records.
This revelation raises questions about ECG’s financial practices and the broader implications for Ghana’s already fragile energy sector, which has long struggled with liquidity challenges, unpaid debts to the Independent Power Producers, and inefficiencies in revenue collection.
Even though ECG under-declared its revenue, it failed to properly disburse payments to key players in the power value chain, the PwC report revealed.
Out of the GH¢10.4 billion it officially declared, ECG paid only GH¢6.5 billion, leaving a GH¢3.9 billion shortfall that remains unaccounted for.
There were discrepancies between the amounts recorded as tariff revenue collections in the CWM (GH¢10.44 billion) for the task 2 period of January to December 2024 and the amounts validated as collections per the bank statements provided (GH¢15.53 billion)
A net amount of GH¢5.09 billion represents the total amount under-declared for the period when the CWM is compared to the amounts validated per the bank statements.
Below is part of the audit.
Comments