ECG

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.

ALSO READ: Fidelity Bank reportedly sues Bright Simons over ‘sweetened ECG FX deal’ claims

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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The Public Utilities Regulatory Commission (PURC) directs Electricity Company Of Ghana (ECG) to provide load shedding timetable amidst current dumsor crises.

PURC wants the Electricity Company of Ghana (ECG) to furnish it with a detailed load management timetable by April 2, 2024.

Despite recent power interruptions, ECG has negated the necessity for a load-shedding timetable. However, the company has identified 630 overloaded transformers during peak hours as a significant contributing factor to the crisis, indicating that these transformers have surpassed their full capacity due to escalating electricity demand.

READ ALSO: Dumsor Timetable For March 2024

In a statement issued on Monday, March 18, 2024, PURC mandated ECG to provide comprehensive details including ratings and current loadings of overloaded distribution transformers, GPS locations of these transformers, ratings of new transformers slated for installation at each location, installation timelines and durations, a corresponding load management timetable, and evidence of dissemination of this information to consumers.

The directive comes amidst growing concerns over ‘Dumsor,’ a term used to describe erratic power supply in Ghana, underscoring the urgency for effective management and communication strategies to mitigate its impact on citizens.

For the full statement by PURC, interested parties can refer to the provided link.

About PURC

The Public Utilities Regulatory Commission  (PURC) was established in October 1997 under the Public Utilities Regulatory Commission Act, 1997 (Act 538) as a multi-sector regulator to regulate the provision of electricity and water utility services. The establishment of the Commission was part of the Government of Ghana’s utility sector reform process.

By virtue of the Energy Commission Act, 1997 (Act 541) PURC also regulates transportation of natural gas services.

Under Section 4 of Act 538, PURC is an independent body and is not subject to the control of any authority in the performance of its functions. The Commission however submits annual operational and financial reports to Parliament. The Office of the President also exercises some administrative oversight for the Commission.

PURC is made up of nine Commissioners including a Chairman, an Executive Secretary, an institutional representative each for labour, industry and domestic consumers, as well as 4 experts in various aspects of the Commission’s work. Commissioners are appointed by the President in consultation with the Council of State for five-year terms, which are renewable.  The Commission is supported by a Secretariat headed by the Executive Secretary