PURC fines ECG board members GHC 5.87m for regulatory breaches

Board members of the Electricity Company of Ghana at post between January 1 and March 18, 2024, have been fined GHS5.87 million for various regulatory breaches.

A PURC investigation revealed that out of 165 planned ECG outages, 40 were supported by public notices, while 125 lacked such notices. Additionally, 38 did not meet the three-day statutory notice requirement.

“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,” PURC concluded after its analysis.

Accordingly, the Commission imposed a charge of 3,000 penalty units for each of the 163 breaches, equivalent to GHS 5,868,000.00.

“For failure to comply with 39 of L.I. 2413, the 3-day statutory notice required under Regulation 45 of L.I. 2413, the Commission 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 deemed imposing the penalty of GHS 5,868,000.00 on ECG counterproductive due to its business nature and potential negative impact on service quality and tariff-paying consumers, hence the demand on board members.

“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.”

“For that reason, 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 January 1 and March 18, 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 times responsible for providing strategic direction to ensure the provision of safe, adequate, efficient, reasonable, and non-discriminatory service to consumers,” PURC explained further.

According to the PURC, the board members of ECG have until May 30, 2024, to pay the charges.