Ghana Targets Two Million Prepaid Meters to Cut Power Losses

Ghana plans to install two million prepaid electricity meters and fully implement private-sector participation in electricity distribution by the end of 2027. Finance Minister Dr Cassiel Ato Forson announced the measures on Thursday 12 November 2026, when he presented the 2027 Budget Statement and Economic Policy to Parliament, as reported by Graphic Online.

The stated aim is to reduce distribution losses and ease the financial strain on the energy sector. Under the proposed arrangement, private-sector expertise would be brought in to improve operational efficiency, while strategic public assets would remain protected. The minister did not give the cost of the meter roll-out, an installation schedule, the areas to be covered or whether households would receive the meters free of charge.

The announcement builds on work already under way at the Electricity Company of Ghana (ECG). In January 2025, ECG issued a procurement notice for the supply and installation of smart prepaid meters across four geographical packages under the Ghana Energy Sector Recovery Programme. The budget statement does not make clear whether the two-million-meter target is additional to that programme, a replacement of existing meters or an expansion of it.

The financial background explains the urgency. Dr Forson said the energy sector recorded an annual shortfall of about US$1.4 billion in January 2025, while arrears owed to Independent Power Producers and fuel suppliers stood at about US$1.7 billion. He said investment across generation, transmission and distribution would help eliminate the annual shortfall and reduce the burden on taxpayers.

Cost is the other half of the plan. The government is targeting a reduction in the cost of power generation from about 16 US cents per kilowatt-hour to eight US cents or less. Halving generation costs would change the economics of the whole system, from tariffs paid by households and firms to the subsidies that the state currently has to cover.

Transmission is also in line for investment. The government has earmarked US$500 million between 2027 and 2030 to modernise the national transmission network. The money will support the Ghana Grid Company (GRIDCo) to strengthen the North-South transmission corridor, connect new generation facilities to demand centres and provide reliable connections to strategic industrial enclaves.

Dr Forson linked these measures to industrial policy. He said a more reliable supply would support activities such as mineral processing, steel production, cement manufacturing and agro-processing, all of which depend on steady, affordable power and are central to Ghana's plans to add more value to its raw materials at home.

Prepaid metering is a familiar tool for utilities facing high losses. It improves revenue collection, gives customers a clearer view of what they use and reduces the scope for unbilled consumption. Private participation in distribution, however, has a mixed history in Ghana, and the details of contracts, performance targets and consumer protections will decide whether the reform improves service or simply shifts risk. Those details were not part of the budget announcement.

For now, the 2027 Budget sets clear targets: two million meters, private participation in distribution by end-2027, generation costs halved and US$500 million for the grid. How they are financed and delivered will shape both the country's public finances and the reliability of its electricity supply.

Why it matters

Ghana's energy debt is not only a balance-sheet problem; it decides whether households and factories get reliable power at a fair price. Two million prepaid meters and private distribution operators can cut losses, but only if contracts carry clear performance targets and protect consumers. The value of the reform will be measured in fewer arrears and fewer outages, not in the number of meters installed.