Commenting on the fine of GH₵ 5.868 million imposed on the Electricity Company of Ghana (ECG) by the Public Utility Regulatory Commission (PURC), Energy Expert, Kwame Jantuah, has indicated that the enmity between the ECG and the PURC is a result of political interference in the operations of both entities.
He noted his amazement at the antagonism between the ECG and the PURC while emphasizing that the two entities are major stakeholders in Ghana’s electricity production sector and are supposed to work amicably to ensure the even distribution of electricity to Ghanaians.
“It makes a nonsense of it so far as I am concerned. Because PURC is a regulator, ECG is a distributor, and this [their disagreement] really shouldn’t be played out in public. There must be an understanding somewhere. What is causing them to fight in public, what is it?”
Kwame Jantuah
Furthermore, Kwame Jantuah noted that both entities are brawling out in public because of political influence, asserting that these entities would not be engaged in a fight otherwise.
He indicated that the PURC is an agency under the office of the President and as such takes instructions from the Presidency while it also advises the President on matters concerning power generation and distribution in the Energy sector.
Moreover, he noted that the PURC’s responsibility is to ensure that it resolves the issues with the Cash Waterfall Mechanism (CWM) cited by the ECG as the cause of the low power generation at the various plants, emphasizing that the PURC is the entity in charge of purchasing fuel and feedstock for power generators.
“So if ECG has used a certain amount of money to procure fuel, is that ECG’s responsibility? Who gave them that responsibility to do?” Kwame Jantuah
More so, he noted that the challenges the Power sector is dealing with include finance, feedstock, maintenance, and debts which need to be resolved urgently.
Kwame Jantuah indicated that the PURC’s action towards the ECG was necessitated by the need to avoid being accused of not complying with the law. “They brought out a mandate for ECG to follow, they didn’t follow and this is what the law says. So they are going by the regulatory powers” he added.
PURC Fines ECG
Meanwhile, The board members of the Electricity Company of Ghana (ECG), who served in office from 1st January to 18th March 2024, are to pay a regulatory charge of GH₵ 5.868 million in fines for overseeing power outages without any notification to power consumers between January and March this year.
The board includes the ECG MD, Samuel Mahama Dubik, and eight others. The current Deputy Energy Minister, Herbert Krapah chairs the board, but he won’t be affected as his tenure falls outside the period of the regulatory orders.
Former Board Chairman of the ECG, Mr. Keli Gadzekpo, who resigned as board chairman three weeks ago, will be affected by this fine. Chief Whip, Frank Annor Dompreh, and five other individuals are all affected.
The PURC further requested the ECG to provide information on tariff revenue allocation under the Cash Waterfall Mechanism (CWM), the provision of regulatory audit data, and the submission of information related to operational matters, as well as the provision of other regulatory audit data.
The amount is to be paid 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.
Originally, the fine was slapped on ECG, but the PURC said it could not allow the company to bear the cost due to the nature of its business, and the likely impact on service delivery. It thus passed on the fine to the company’s board members.
It said 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.
Meanwhile, the utility regulator has fined the ECG GHS36,000 for failing to submit all bank and investment accounts it currently operates to the Commission.
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