The Public Utilities Regulatory Commission (PURC) has criticized the Electricity Company of Ghana (ECG) for its decision to use funds from the cash waterfall mechanism to purchase fuel for power generation.

This decision has reportedly left the Volta River Authority (VRA) and the Ghana Grid Company (GRIDCo) cash-strapped between November 2023 and January 2024, negatively impacting their operational capacity.

PURC has given ECG a one-week ultimatum to respond to a set of demands and warned that it may impose sanctions if the demands are not met.

Alhaji Jabaru Abubakar, the Director of Regional Operations and Consumer Services at the Commission, emphasized that the ECG must adhere to regulatory guidelines and cannot operate on its own terms. He dismissed speculation of a turf war between the PURC and ECG, stating that the PURC is simply fulfilling its role as a regulator.

Energy analyst Kwame Jantuah suggested the need for a mediation body to resolve the differences between the two entities.

Meanwhile, the Mines and Energy Committee in Parliament has summoned the Energy Minister and the managing director of ECG to address the recent public dispute. Committee Chairman Samuel Atta Akyea stated that they view the matter as important and aim to understand the root cause of the disagreement between the regulator and the distributor.