Source: newsthemegh.com
The Public Utilities Regulatory Commission (PURC) has penalized the Electricity Company of Ghana (ECG) heavily for a number of violations.
ECG was fined GHS 36,000 by the PURC for not disclosing all of its bank and investment accounts in spite of repeated inquiries.
A substantial fine of GH₵ 5,868,000 is also awaiting the corporation for 163 violations pertaining to the posting and notification of scheduled outages.
Given the financial difficulties facing the firm and the possible negative effect on service quality, the PURC has chosen to transfer the latter fine to the board members of ECG.
The board members are now responsible for paying the GH₵ 5,868,000 fine by May 30, 2024. They will hold office from January 1 to March 18, 2024.
“The Commission hereby imposes an initial regulatory charge of 3,000 penalty units on ECG per Regulation 45 of LI 2413, amounting to GH₵36, 000”, a letter to ECG said adding: “ECG shall pay the initial regulatory charge of GHS36, 000 to the Commission on or before 22 April 2024”.
Regarding the time frame for compliance, the PURC added that after the payment, “for every working day that the requested details remain outstanding, ECG shall pay an additional regulatory charge of 3,000 penalty units, calculated daily until the date of compliance.” statement said.
“The Commission has determined that having regard to the nature of ECG’s ownership and business, the imposition of the penalty of GHS 5,868,000 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 conveyed.
“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 from 1 January to 18 March 2024 liable for the payment of the GH₵ 5,868,000.”
Moreover, ECG is required to use the Cash Waterfall Mechanism to pay Category B recipients GH₵ 446,283,706.29.
This sum, which represents unpaid revenue from August 2023 to February 2024, is to be paid by April 30, 2024. Failure to do so will subject board members and management to liability.