The Public Utilities Regulatory Commission (PURC) has denied media reports suggesting that the Electricity Company of Ghana (ECG) is facing bankruptcy, stating that these claims were misrepresented.
In a public notice signed by its commissioners, PURC clarified that reports attributing bankruptcy claims to its Executive Secretary, Dr. Ishmael Ackah, are incorrect.
On Wednesday, September 18, several news outlets reported that PURC warned of ECG being on the verge of bankruptcy due to significant financial difficulties.
However, PURC emphasized that it had not issued any such warning; rather, concerns about financial challenges originated from a letter sent by ECG management to the Presidency and the Energy Minister.
“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.
