‘Irresponsible’ ECG spent misappropriated cash on fuel – PURC

The Electricity Company of Ghana (ECG) finds itself at the center of controversy, as the Public Utilities Regulatory Commission (PURC) has labeled its cash on fuel for power generation as “irresponsible.”

This expenditure, drawn from the funds of the cash waterfall mechanism, is said to have financially strained both the Volta River Authority (VRA) and the Ghana Grid Company (GRIDCo), critically affecting their operations from November 2023 to January 2024.

The PURC, tasked with overseeing the fair regulation of utility companies, has not taken this matter lightly.

Alhaji Jabaru Abubakar, the Director of Regional Operations and Consumer Services at the Commission, has issued a stern ultimatum to ECG, demanding a response to a series of requisites within a week.

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Failure to comply could lead to sanctions, underscoring the seriousness with which the PURC views ECG ‘s unilateral actions.

Abubakar refutes any notion of a regulatory overreach or a turf war, positioning the PURC’s actions within its mandate to enforce adherence to regulatory standards.

This dispute has caught the attention of the energy sector and beyond, prompting calls for a mediating body to bridge the divide between ECG and PURC.

Kwame Jantuah, an energy and fuel analyst, echoes this sentiment, emphasizing the need for a resolution mechanism to preempt such conflicts in the future.

In a significant move, the Mines and Energy Committee of Parliament has stepped in, summoning both the Energy Minister and the managing director of ECG.

Led by Chairman Samuel Atta Akyea, the committee aims to delve into the crux of this public disagreement, highlighting its critical nature and the necessity for a swift and transparent resolution.

This dispute not only brings to light the challenges of regulatory compliance but also underscores the intricate balance required in managing Ghana’s energy resources effectively.

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