Audio By Carbonatix
Former Minister for Power has hailed the decision by the Public Utilities Regulatory Commission (PURC) to fine the board members of the Electricity Company of Ghana (ECG) some GH¢5.8 million.
The Member of Parliament (MP) for Pru East, Dr. Kwabena Donkor described it as a significant move.
The PURC imposed this hefty fine, totaling GH¢5,868,000, on ECG board members who served from the beginning of the year until March 18, 2024.
This punitive action was taken due to their violation of Regulation 39 of L.I. 2413, which requires prior notification to consumers before any disruption in power supply occurs.
The fine has affected various individuals, including Keli Gadzekpo, who resigned as Board Chair on March 26, and the current ECG Managing Director, Samuel Dubik Mahama.
Speaking on Citi FM, Dr. Donkor expressed his support for the fine.
He noted that, it is necessary because the board members failed to take responsibility for the company’s decisions.
“For me, that is extremely refreshing. Extremely refreshing because I also rank the State Enterprises Committee of Parliament and good governance has been noticed more by its absence in a number of State-owned Enterprises.
"Board members do not take responsibility for decisions of the entities that they superintend over and so, I am very excited about that,” he stated.
Background
The board's failure to issue a public load-shedding timetable by April 2, 2024, as directed by the PURC in a March 18 letter, is the basis for the penalty. The letter also demanded the ECG submit details on planned outages undertaken between January and March.
An analysis of the submitted data by the PURC revealed that 4,142 power outages occurred during the period. Only 165, representing a mere 3.98% of the total, were classified as planned outages by the ECG. Further examination showed that public notices accompanied only 40 of these planned outages, leaving the remaining 125 without any explanation to consumers.
The PURC investigation found that 38 of the 40 notifications failed to adhere to the mandatory three-day statutory notice stipulated by Regulation 39 of L.I. 2413. In essence, the ECG disregarded legal requirements in 163 instances of planned outages.
The regulatory body is imposing a fine of 3,000 penalty units on the ECG for each violation related to the timetable directive. However, acknowledging the ownership structure of the ECG, the PURC has redirected the penalty towards the board members.
The decision to hold the board members accountable stems from the potential negative impact on service quality if the fine were levied directly on the ECG. The PURC explained, "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 until May 30, 2024, to settle the fine into "a dedicated fuel account under the joint control of the Ministry of Energy and the Ministry of Finance."
Latest Stories
-
$214M in gold-for-reserves programme not a loss, Parliament’s economy chair insists it’s a transactional cost
18 minutes -
Elegant homes estate unveils ultra-modern sports complex in Katamanso
32 minutes -
ECG can be salvaged without private investors -TUC Deputy Secretary-General
37 minutes -
Two pilots killed after mid-air helicopter collision in New Jersey
50 minutes -
2025 in Review: Fire, power and the weight of return (January – March)
1 hour -
Washington DC NPP chairman signals bid for USA chairmanship
1 hour -
Sheikh Ali Muniru remains Volta regional Imam, says National chief Imam
2 hours -
GoldBod CEO accuses Minority of hypocrisy over Gold-for-Reserves losses
2 hours -
Sammy Gyamfi to address alleged losses under gold for reserves programme on Jan 5
2 hours -
BoG–GoldBod $214m hit is design failure, not market loss – Minority
2 hours -
Festive season sees minor fires, but domestic cases hit 15–20 daily – GNFS
2 hours -
CLGB statement on IMF-reported losses under the Gold-For-Reserves programme (G4R)
2 hours -
Ghanaian scientist Moses Mayonu pioneers metabolomics research on the global stage
2 hours -
Planetech Week: Israeli Innovation Sweetens Global Tables with Cherry Tomatoes
3 hours -
Minority demands answers on Bawa-Rock Limited monopoly in GoldBod deal
3 hours
