Former Minister of Power, Dr Kwabena Donkor, has welcomed the fines imposed on the board of directors of the Electricity Company of Ghana (ECG) by the Public Utilities Regulatory Commission (PURC).
He says this move by the PURC is a step in the right direction.
“I was expecting some sanctions, let us remember ECG as a corporate body has also been sanctioned and then the board of directors who have fiduciary responsibilities have also been sanctioned. I believe it is a step in the right direction,” the Pru East lawmaker said on the Ghana Tonight show on TV3 on Tuesday, April 16.
The PURC has given a six-week ultimatum to the Board Members of the Electricity Company of Ghana (ECG) to pay a fine of Five Million, Eight Hundred and Sixty-Eight Thousand Ghana Cedis (GHS5, 868,000.00).
The fine was imposed as result of the ECG’s failure to notify its customers about power outages between January and March this year.
This is contained in an order statement issued 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 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 regulatory body ordered.
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 the 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.
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.”