GHANA’S Public Utilities Regulatory Commission (PURC) has taken decisive action against the Electricity Company of Ghana (ECG), imposing fines totalling millions of Ghanaian Cedis due to regulatory infractions.
In response to ECG’s failure to disclose its complete financial information, despite repeated requests from the commission, PURC has fined the utility company GHS36,000 ($2,679). This penalty stems from an initial regulatory charge of 3,000 penalty units under Regulation 45 of LI 2413, as outlined in a letter submitted to the electricity regulator.
‘The Commission has determined that having regard to the nature of ECG’s ownership and business, the imposition of the penalty… would be counter-productive,’ the letter states, expressing concern about the impact on service quality and consumer tariffs.
Moreover, ECG faces an additional fine of GHS 5.868 million ($ 436,764) for 163 breaches related to the notification and publication of planned outages. Board members in office from January 1 to March 1, 2024, will be held accountable for this penalty by May 30, 2024.
‘The Commission shall hold the Board Members of ECG… liable for the payment,’ the letter further elaborates, emphasising the commission’s commitment to consumer interests.
Furthermore, ECG has been directed to pay GHS446,283,706.29 (approximately $33 million) to Category B beneficiaries under the Cash Waterfall Mechanism (CWM). This sum represents unpaid revenue from August 2023 to February 2024 and includes entities such as the Volta River Authority (VRA), Bui Power Authority, and Ghana Gas, among others.
A portion of this fine must be settled by April 30, 2024, or face accountability measures against board members and management.
The penalties come amidst ongoing electricity challenges in Ghana, with the country experiencing a 10 percent loss in total generation capacity. Recent blackouts in October 2023 were attributed to gas shortages for power generation.
The PURC’s actions underscore the importance of regulatory compliance in ensuring efficient and reliable utility services for consumers across Ghana.