By: Mabel Adorkor Annang
The Public Utilities Regulatory Commission (PURC), has refuted claims that it warned the Electricity Company of Ghana, ECG, of potential bankruptcy.
In a statement signed by PURC’s Commissioners, the Commission clarified that it was ECG itself that first raised the issue in a letter to the Ministry of Finance on August 26, 2024. ECG requested a buffer period to improve their cash flow and avoid financial instability.
Following ECG’s letter, PURC advised the Ministry of Energy and the Presidency on the potential risks to the energy sector if ECG’s financial situation worsens.
According to the statement, ECG responded to PURC’s advice with personal attacks on the Commission’s leadership. PURC clarified that decisions are made collectively by the Board.
PURC maintains that forex losses are addressed in their quarterly reviews and denies claims that the Commission overlooks these issues.
PURC also dismissed ECG’s allegations that it had overlooked key aspects of the Cash Waterfall Mechanism and fuel purchases.
The Commission emphasised that ECG should focus on its core mandate of electricity distribution and not venture into ancillary businesses like fuel procurement.
PURC expressed concerns about ECG’s compliance with the revised Cash Waterfall Mechanism, noting that its collection ratio from January to July 2024 averaged only 45%, far below the required 98%.
Despite these disagreements, PURC is assuring the public of its commitment to balancing the interests of consumers and utility providers while working towards the sustainability of Ghana’s energy sector.