Source: Myjoyonline.com
The Public Utilities Regulatory Commission, PURC, has fined the Electricity Company of Ghana (ECG) GHS36,000 for failing to submit all bank and investment accounts it currently operates to the Commission.
The PURC had made three requests to the ECG with the timelines of March 25, March 27, and April 2, 2024.
The information requested relates to the tariff revenue allocation under the Cash Waterfall Mechanism (CWM), the provision of regulatory audit data and the submission of information related to operational matters, as well as the provision of other regulatory audit 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.”
ECG Board Members to Cough up GHS5.868m
For failure to comply with the 3-day statutory notice on notification and publication of planned outages required under Regulation 39 of L.I. 2413, the Commission in accordance with Regulation 45 of L.I. 2413, also imposed a regulatory charge of 3,000 penalty units on ECG for each of the 163 breaches, amounting to Five Million, Eight Hundred and Sixty-Eight Thousand Ghana Cedis (GHS 5,868,000.00).
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).”
It said these board members were at all material times 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.
In addition to honouring its ongoing obligations under the Cash Waterfall Mechanism, the PURC ordered ECG to pay the amount of GHS446,283,706.29 to the Category B beneficiaries under the CWM.
“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.”
On the time-frame for compliance, the Commission said ECG shall pay the amount of GHS446,283,706.29 before or by 30th April 2024.
It said in the event of failure to pay by the said date, the board members and management of ECG shall be held liable.
Source: www.myjoyonline.com
