The Public Utilities Regulatory Commission (PURC) has imposed a fine of GHS36,000 on the Electricity Company of Ghana (ECG) for its failure to submit all current bank and investment accounts to the Commission.

Despite three requests from the PURC with deadlines of March 25, March 27, and April 2, 2024, the ECG did not comply.

The requested information includes details on tariff revenue allocation under the Cash Waterfall Mechanism (CWM), regulatory audit data, operational information, and other relevant data.

But in a letter submitted to the ECG on Monday, April 15, the PURC said it found that “details of ECG’s bank accounts submitted were incomplete, contrary to the Order. 3.3 Submission of Information Related to Operational Matters.”

“The Commission hereby imposes an initial regulatory charge of 3,000 penalty units on ECG in accordance with Regulation 45 of LI 2413, amounting to Thirty-six Thousand Ghana Cedis (GHS36, 000).”

The letter said “ECG shall pay the initial regulatory charge of GHS36, 000 to the Commission on or before 22 April 2024.

On 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.”

Due to the Electricity Company of Ghana's (ECG) failure to comply with the 3-day statutory notice requirement for notification and publication of planned outages, as stipulated under Regulation 39 of L.I. 2413, the Public Utilities Regulatory Commission (PURC) has imposed a regulatory charge.

Pursuant to Regulation 45 of L.I. 2413, the Commission has fined ECG 3,000 penalty units for each of the 163 breaches, totaling Five Million, Eight Hundred and Sixty-Eight Thousand Ghana Cedis (GHS 5,868,000.00).

Recognizing the potential impact of this fine on ECG's ability to maintain service quality for consumers, the Commission has decided to hold the board members of the company, including ECG MD Samuel Dubik Mahama, accountable for the payment of the fine.

The Commission however stated that, due to nature of ECG's business, paying that amount will affect the quality of service to consumers. It thus passed on the fine to the board members of the company which include the ECG MD, Samuel Dubik Mahama.

“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 from 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).”

The Commission stated that these board members were consistently 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 from 1 January to 18th 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 amount represents actual revenue collected by ECG, declared by ECG to the CWM, and approved by the CWM Standing Committee for payment from August 2023 to February 2024, but which remains unpaid."

The Commission specified that ECG must pay the amount of GHS446,283,706.29 on or before April 30, 2024. Failure to comply by the specified date will result in the board members and management of ECG being held accountable.