Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has announced a major turnaround in the power sector, revealing that the Electricity Company of Ghana (ECG) has increased its monthly revenue by almost 90 percent, rising from GH¢900 million to GH¢1.7 billion.
Presenting the 2026 Budget Statement to Parliament, Dr. Forson attributed the improvement to stricter enforcement of the Cash Waterfall Mechanism, which has enhanced transparency and revenue collection within the energy sector.
“Mr. Speaker, ECG’s revenue has improved by almost 90 percent per month, from GH¢900 million to GH¢1.7 billion per calendar month,” Dr. Forson stated.
He further disclosed that, for the first time, the country is not accumulating new arrears in the energy sector. According to him, solar tariff rates under projects such as BXC and Managers Energy have been successfully renegotiated, dropping from 18 cents to 6.5 cents per kilowatt-hour — a move that has cut costs and expanded electricity access.
Dr. Forson also provided updates on the government’s audit of arrears and payables. Upon assuming office, the administration faced outstanding obligations totaling GH¢68.8 billion, including GH¢50.5 billion in unpaid invoices and interim payment certificates (IPCs), and GH¢18.3 billion in outstanding bank transfer advice.
He said the government, in collaboration with the Auditor-General and its partners, commissioned an independent validation exercise to verify the legitimacy of these claims, identify irregularities, and address fiscal risks associated with accumulated arrears.
“Mr. Speaker, the audit has now been completed, and the Auditor-General is finalizing his report for submission to Parliament,” he added.
The Minister reaffirmed government’s commitment to fiscal discipline, transparency, and value for money, emphasizing that the reforms in the energy sector form part of broader efforts to restore economic stability and rebuild public trust.
By Ebenezer Madugu
