The Public Utilities Regulatory Commission (PURC) has fined the Board members of the Electricity Company of Ghana (ECG) an amount of Five Million, Eight Hundred and Sixty-Eight Thousand Ghana Cedis (GHS5, 868,000.00) for failing to notify its customers about power outages between January and March this year.
This is contained in an order statement released by the PURC on April 15, 2024.
“For failure to comply with the 3-day statutory notice required under Regulation 39 of L.I. 2413, the Commission in accordance with Regulation 45 of L.I. 2413, hereby imposes a regulatory charge of 3,000 penalty units on ECG for each of the 163 breaches, amounting to Five Million, Eight Hundred and Sixty-Eight Thousand Ghana Cedis (GHS 5,868,000.00).
“The Commission has determined that having regard to the nature of ECG’s ownership and business, the imposition of the penalty of Five Million, Eight Hundred and Sixty-Eight Thousand Ghana Cedis (GHS 5,868,000.00) on ECG would be counter-productive, as payment from ECG’s revenue would have a rebounding adverse effect on quality of service and consumers who pay tariffs to the company,” the PURC stated.
It noted that “in the interest of justice and to protect the interests of consumers, the
Commission shall hold the Board Members of ECG who were in office between 1 January to 18 March 2024 liable for the payment of the Five Million, Eight Hundred and Sixty-Eight Thousand Ghana Cedis (GHS 5,868,000.00). These Board Members were at all material times responsible for providing strategic direction to ensure the provision of safe, adequate, efficient, reasonable and non-discriminatory service to consumers.”
The PURC further directed that “The Board Members of ECG in office between 1 January to 18 March 2024 shall pay the regulatory charge of Five Million, Eight Hundred and Sixty-Eight Thousand Ghana Cedis (GHS5,868,000.00) into a dedicated fuel account under the joint control of the Ministry of Energy and the Ministry of Finance on or before 30th May, 2024. The Commission will validate compliance in tandem with its Cash Waterfall validation reports and periodic regulatory monitoring.”
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It would be recalled that in March 2024, the PURC warned that it would be compelled to issue regulatory sanctions against the power distribution company.
This came after regulatory body observed that the ECG had failed to comply with its directive to release a load-shedding timetable corresponding with the timelines and duration for each transformer injection.
PURC to take regulatory action against ECG for not releasing load-shedding timetable
The regulator said it had not seen any evidence of the publication of the load management timetable despite being ordered to do so. In that regard, the Commission said it “is finalizing regulatory action on the above.” Thus, the fine imposed on the Board members.
The ECG has been facing public backlash due to the prevailing erratic power supply situation in the country, locally known as ‘Dumsor’. While it lays the blame at the doorstep of the Ghana Grid Company (GRIDCo), the latter also points to ECG for not complying with notices given to it.
Amid this blame game, the Board Chairman of the ECG, Mr Keli Gadzekpo resigned for “personal reasons.”
‘It’s personal’ – Keli Gadzekpo on why he resigned as ECG Board Chairman
