ECG reviews Hubtel contract to ensure value for money
The Electricity Company of Ghana (ECG) is reviewing all major contracts, including its partnership with Hubtel, to improve compliance and guarantee value for money.
The move is in line with the Public Financial Management (PFM) Act.
Appearing before the Public Accounts Committee of Parliament on Tuesday, October 28, 2025, Acting Managing Director Julius Kpekpena said ECG has engaged a legal consultant to assess all key agreements to ensure they meet the standards required under the law.
Introducing the review process, he disclosed that Hubtel’s contract is among those being scrutinised.
“In fact, we just engaged a lawyer to help us review all our major contracts, and the Hubtel contract is one of them, so that we can align all our agreements with the applicable law,” he said.
Mr Kpekpena further explained that the PFM Act requires ECG to collect and settle all revenues at gross value, meaning no deductions are to be made before funds are transferred to the company.
“The PFM Act requires that we collect the money at gross and that Hubtel settles us at gross,” he noted.
Mr Kpekpena provided clarity on how this arrangement works, detailing the process by which Hubtel handles ECG’s digital payments.
“For Hubtel to settle us at gross, they will need to pay mobile money fees collected by MTN or Telecel on our behalf. Payments made with a Visa card are also processed in the same way, with Hubtel invoicing ECG for reimbursement before paying the mobile money companies and card providers,” he stressed.
Mr Kpekpena noted that this structure may result in ECG bearing additional costs under the gross settlement model.
The development follows ECG’s reduction of Hubtel’s commission from three per cent to 1.65 per cent last month as part of broader efficiency measures.
