The Electricity Company of Ghana (ECG) has found itself in hot water after the Public Utility Regulatory Commission (PURC) imposed a hefty fine of GHS 5,868,000.00 for non-compliance with regulations. This fine comes as a result of ECG's failure to provide the required notice for planned power outages, as mandated by Regulation 39 of L.I. 2413.
PURC's investigation revealed that out of 165 planned outages, only 40 were supported by public notices, leaving 125 outages without any prior warning to the public. Furthermore, of the 40 notices issued, 38 did not comply with the mandatory three-day statutory notice period. This lack of compliance with the law led PURC to impose a charge of 3,000 penalty units for each of the 163 breaches, totaling GHS 5,868,000.00.
In a bold move, PURC determined that the fine should not be paid from ECG's revenue, as it would negatively impact the quality of service and burden the consumers. Instead, the commission held the Board Members of ECG who were in office between 1 January to 18 March 2024 responsible for the payment. These Board Members, tasked with providing strategic direction to ensure the provision of safe, efficient, and non-discriminatory service to consumers, have until 30th May 2024 to settle the fine.
The decision to hold the Board Members personally liable for the fine underscores the importance of accountability and adherence to regulatory requirements. It serves as a reminder to all corporate leaders of their responsibility to uphold the highest standards of governance and compliance.
As the deadline for payment approaches, all eyes will be on the ECG Board Members to see how they respond to this significant penalty. The outcome of this situation will undoubtedly have implications for corporate governance and regulatory compliance within the energy sector.
It is imperative for organizations and their leadership to prioritize adherence to regulations and ensure that the interests of consumers are protected. The repercussions of non-compliance can be severe, not only in terms of financial penalties but also in terms of reputation and public trust.
The ECG Board Members now face a critical test of their leadership and accountability. How they address this issue will undoubtedly shape the future trajectory of the Electricity Company of Ghana and set a precedent for corporate responsibility in the energy industry.
-source starrfm | curated by Aisha Yakubu | GhanaCrimes
