Electricity Company of Ghana Penalized for Violations and Lack of Transparency in Account Reporting. The Public Utilities Commission (PURC) has reportedly fined the Electricity Company of Ghana (ECG) $2,679 for failing to disclose all of its existing bank and investment accounts despite many commission requests.
Electricity Company of Ghana Penalized for Violations
The Electricity Company of Ghana (ECG) has been hit with significant penalties and fines for breaches and failure to disclose account information.
According to a letter submitted to the country’s electricity regulator, ECG faces an initial regulatory charge of 3,000 penalty units, totaling GHS 36,000. Failure to pay by the deadline will result in additional penalties of 3000 penalty units per day.
ECG is also facing a separate fine of GHC 5.868 million ($ 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 these breaches by May 30, 2024.
Additionally, ECG has been ordered to pay GHS 446,283,706.29 (approximately $33 million) to Category B beneficiaries under the Cash Waterfall Mechanism (CWM).
Unpaid Revenue and Accountability
The Category B beneficiaries include entities such as the Volta River Authority (VRA), Bui Power Authority, and Ghana Grid Company (GRIDCo). The commission has mandated that a portion of the fine must be paid by April 30, 2024, or else board members and management will be held liable.
Electricity Challenges in Ghana
Ghana has been grappling with electricity challenges, losing 10% of its total generation capacity in recent times. In October 2023, the country experienced blackouts in many parts due to gas shortages for power generation.
The penalties imposed on ECG underscore the importance of regulatory compliance and transparency in the energy sector to ensure a reliable and efficient electricity supply for the nation.
Content of the Letter Sent
“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 letter in part reads.
Consequently, “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 from 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).”
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