The Public Utilities Regulatory Commission (PURC) has refuted media reports suggesting that the Electricity Company of Ghana (ECG) is likely facing bankruptcy, clarifying that these claims were misreported.
In a public notice signed by its commissioners, PURC stated that the reports attributing claims of ECG's bankruptcy to its Executive Secretary, Dr.
Ishmael Ackah, are inaccurate.
Several news outlets had reported on Wednesday, September 18, that PURC warned of ECG being on the brink of bankruptcy due to severe financial difficulties.
However, PURC clarified that it had not issued any such warning.
Instead, it was a letter from the management of ECG to the Presidency and the Energy Minister that first raised concerns about financial challenges. "The ECG in a letter to the Honourable Minister of Finance, referenced MD/MOF/V.10/018 and dated 26th August 2024, with the subject: "Request for Buffer Period for Cash Build-Up", expressed serious concerns regarding their current financial situation and warned that "this situation if not addressed promptly could lead to severe financial instability and potential bankruptcy for ECG". "The media publications wrongly created the impression that the Commission on its own originated the issue of bankruptcy without an initial appeal from ECG." "The PURC, on September 16, 2024, wrote an internal communication to the Energy Ministry and the Presidency, to advise on the significant threat that any financial instability of ECG would pose to the sustainability of the sector and the security of electricity supply.
The letter, "ECG's Financial Challenges and the Sustainability of the Energy Sector" was written pursuant to PURC's statutory obligation to safeguard stakeholders' interests and to advise any person or authority on public utility matters," PURC's notice further clarified.
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