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ECG urges PURC to revoke unjustifiable GH¢5.8m fine on former board members

The Electricity Company of Ghana (ECG) has called upon the Public Utilities Regulatory Commission (PURC) to promptly retract the substantial GH¢5.8 million fine levied against its former board members.

On Tuesday, April 16, the Public Utilities Regulatory Commission (PURC) imposed a substantial GH¢5.8 million fine on former board members of the Electricity Company of Ghana (ECG) who served from January 1 to March 18, 2024.

This penalty was imposed for various infractions, including the failure to provide a load-shedding timetable following a series of power outages between January and March of the same year.

On three consecutive occasions, the Electricity Company of Ghana (ECG) failed to comply with requests from the Public Utilities Regulatory Commission (PURC) for specific data related to tariff revenue allocation, regulatory audits, operational matters, and other audit-related information.

As a result, the PURC imposed a fine of GH¢36,000 on the power distributor. Additionally, former ECG board members were penalized with a GH¢5.8 million fine for their failure to provide a load-shedding timetable during a period of power outages between January and March 2024.

However, in response to these sanctions, the Managing Director of ECG, Samuel Dubik Mahama, declared them null and void in a letter dated Friday, April 19. Mahama argued that these penalties contravene the provisions of the Public Utilities Regulatory Commission Act, 1997 (Act 538), and therefore requested their withdrawal.

Mr. Dubik Mahama said it submitted all the documents PURC requested in its March 18 letter and should have been given a chance to clarify any misunderstandings if any.

“Following our above submissions, we strongly advise that the Commission immediately withdraws the Further Orders dated 15th April 2024, directed at ECG and its Board of Directors as same is NULL AND VOID. It is further advised that ECG should be given the opportunity to be heard on any charges of alleged breaches of its duties and obligations following the submission of its reports pursuant to PURC Orders dated 18th March 2024.

“Please take note that this request is without prejudice to ECG’s legal rights to seek an order of certiorari to quash the said orders, an order of prohibition against further arbitrary actions of the Commission and a mandamus to compel the Commission to hear ECG on the alleged breaches of its duties under the Act 538 and LI 2413.”

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