Samuel Dubik Mahama – DG of ECG
The Public Utilities and Regulatory Commission (PURC) has imposed a fine of GHS 5.8 million on the board members of the Electricity Company of Ghana (ECG) for overseeing power outages without prior notifications to consumers between January and March this year.
Initially, the fine was levied on the ECG, but the PURC decided to transfer the cost to the board members due to the potential impact it could have on service delivery and the nature of the company’s business.
The PURC asserted that the board members were responsible for providing strategic direction to ensure the provision of safe, efficient, and non-discriminatory service to consumers.
The penalty was imposed for not complying with the required 3-day statutory notice on notification and publication of planned outages as per Regulation 39 of L.I. 2413. Under Regulation 45 of the same law, the PURC imposed a regulatory charge of 3,000 penalty units on ECG for each of the 163 breaches, totaling GHS 5,868,000.
Recognizing that imposing the fine on ECG directly could adversely affect service quality and consumers paying tariffs to the company, the PURC chose to hold the board members accountable. The commission stated that their decision was in the interest of justice and the protection of consumer interests.
Among the board members affected by the fine are ECG Managing Director Samuel Mahama Dubik, former Chairman Keli Gadzekpo (who resigned three weeks ago), Chief Whip Frank Annoh-Dompreh, and five other individuals.
In addition to the fines, the PURC has directed the ECG to pay GHS 446,283,706.29, representing the actual revenue collected from August 2023 to February 2024 that was declared and approved but not paid to the CWM (Commissioned Works Manager). Failure to make this payment will result in the board members and management of ECG being held liable.
The fines and revenue payments are to be deposited into a dedicated fuel account under the joint control of the Ministry of Energy and the Ministry of Finance, as per the letter sent by PURC to the ECG on April 15, 2024.
This development seeks to address the issue of power outages and ensure that consumers are adequately notified beforehand, while also holding responsible parties accountable for their actions or lack thereof.
By Vincent Kubi