PURC fines ECG board members GH¢5.8millio over ‘dumsor’

Public Utilities Regulatory Commission (PURC) has imposed a heavy fine of Five Million, Eight Hundred and Sixty-Eight Thousand Ghana Cedis (GHS 5,868,000.00) on members of the Electricity Company of Ghana (ECG) board who served from January 1 to March 18, 2024.

This action was taken due to their violation of Regulation 39 of L.I. 2413, which requires prior notification to consumers before any power interruption.

Among those affected by the fine are Keli Gadzekpo, who resigned as Board Chair on March 26, and the current ECG Managing Director, Samuel Dubik Mahama.

PURC in a March 18 letter had directed the ECG to issue a load-shedding timetable by April 2, 2024, which was blatantly flouted without an explanation.

The Commission’s March 18 letter also demanded that the ECG submit the total number of planned outages that it undertook between January and March.

PURC in a letter on Monday, April 15, said its analysis of the data submitted showed that 4142 outages were carried out within the period.

“The Commission established from its analysis of data submitted by ECG that there were 4142 outages to consumers within ECG's operational areas between January and March 2024. Out of this number, 165 representing 3.98% of the total outages were ECG-planned outages. Further analysis showed that of the 165 ECG planned outages, 40 were supported by public notices, while there were no notices for the remaining 125 outages.

“Further, 38 of the 40 notices did not comply with the requisite three-day statutory notice prescribed under Regulation 39 of L.I. 2413. This indicates that in 163 instances of planned outages, ECG did not comply with the law.”

The regulator indicated it is imposing 3,000 penalty units on ECG for each breach it committed in its defiance of complying with the timetable directive.

It added that the fine be imposed on ECG’s board members due to ownership structure.

“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 nine board members have up to May 30, 2024, to pay the fine “into a dedicated fuel account under the joint control of the Ministry of Energy and the Ministry of Finance.”

—CitiNewsroom