Power Wasted: Ghana’s Electricity Crisis Deepens as ECG Loses 32% of Power Purchased in 2024.

In 2024, Ghana’s Electricity Company of Ghana (ECG) hit a disturbing milestone: it lost 32% of all electricity it purchased. This means that for every 100 Ghana cedis spent on power, only 68 cedis’ worth reached consumers. The remaining 32 cedis—representing over 5,000 GWh—were lost either in transit or to theft, marking the highest loss rate since 2000.

Electricity Company of Ghana Distribution Losses

What’s Causing the Losses?

These losses fall into two major categories:

⚠️Technical Losses:

These occur as power moves through transmission and distribution lines. Poor infrastructure, overloaded transformers, and outdated systems all contribute to these inefficiencies.

⚠️Commercial Losses:

This includes power theft, unmetered connections, billing inefficiencies, and non-payment. The Energy Commission and other watchdogs suggest that commercial losses—especially illegal connections—are the larger culprit.

Why It Matters

Revenue Drain: With over 30% of power lost, ECG’s financial position is unsustainable. This directly affects its ability to pay power producers, leading to a chain reaction of debts across the energy sector.

Tariff Pressure: Losses are eventually passed to consumers through higher tariffs, fueling public discontent.

Blackout Risks: Inefficiencies worsen the already fragile grid and increase the risk of load-shedding and outages.

Fixing the Grid

To curb the bleeding, ECG must invest in:

- Smart meters to detect theft in real-time.

- Upgrading transformers and cables to reduce technical losses.

- Legal enforcement to crack down on illegal connections.

- Privatization or performance-based management of distribution zones.

The 32% loss in 2024 should be a wake-up call for Ghana’s energy planners. Without urgent reforms, ECG’s inefficiencies will continue to cost the nation billions, drive up tariffs, and discourage industrial growth. Power theft isn’t just an economic issue—it’s a threat to national development.