ECG Archives - Apex News GH

ECG Violates Revised Cash Waterfall Mechanism, PURC Reports

The Electricity Company of Ghana (ECG) has found itself in hot water with the Public Utilities Regulatory Commission (PURC) over its failure to comply with the revised Cash Waterfall Mechanism (CWM). Apexnewsgh reports Introduced in August 2023 under President Nana Addo Dankwa Akufo-Addo’s directive, the CWM aimed to boost financial stability in Ghana’s energy sector by ensuring transparency and fairness in revenue distribution. However, the PURC’s report reveals that ECG hasn’t made monthly payments to stakeholders as required, sparking concerns about the company’s commitment to transparency and fairness. The PURC stressed that ECG’s non-compliance undermines the purpose of the CWM, which is to allocate revenue fairly among sector players. The commission also criticized ECG for its inconsistent and opaque payment practices, citing these issues as major contributors to the sector’s dwindling financial stability and declining service quality. “The lack of transparency and consistency in revenue payments has severe consequences, including worsening financial sustainability and deteriorating service quality,” the PURC warned. It’s worth noting that ECG has since shown improvement in complying with the CWM, as reported by the PURC for March 2024 payments. However, the company must sustain this progress to regain stakeholder trust and ensure a stable energy sector. Apexnewsgh.com/Ghana/Ngamegbulam Chidozie Stephen Please contact Apexnewsgh.com on email apexnewsgh@gmail.com for your credible news publications. Contact: 0248250270/0256336062. Key Concerns: – Lack of Transparency: ECG’s inconsistent payment practices hinder transparency in revenue distribution. – Inequitable Revenue Allocation: Non-compliance with CWM guidelines undermines fair revenue allocation among sector players. – Declining Service Quality: Inconsistent payments impact the overall quality of services provided by ECG. The PURC’s findings serve as a wake-up call for ECG to rectify its payment practices and prioritize transparency, fairness, and financial stability in Ghana’s energy sector.

Opinion

ECG Managing Director Apologizes For Recent Power Outages

The Managing Director for Electricity Company of Ghana (ECG), Samuel Dubik Mahama, has issued a public apology to Ghanaians who have been affected by the recent power outages in various parts of the country. The power outages have been ongoing for several days without prior notice from ECG or GridCo. Mr. Mahama made this statement during an interview on Starr Chat with Bola Ray on Thursday, February 29, 2024. He explained that the challenges with the recent power outages were mainly due to maintenance issues, and ECG takes full responsibility for the situation. “We are at the bottom of the food chain and the one that gives you the power and distributes the power. There is an intermediary who carries the power from the generators to us. So when this whole thing was happening there was conversation at the top,” Mr. Mahama said. He assured the public that ECG was working diligently to resolve the issues as quickly as possible. However, he emphasized the need for accountability and apologized for the inconvenience caused to consumers. In response to the power crisis, the Minority in Parliament has urged the government to find an immediate solution to the instability experienced by electricity users. John Jinapor, Ranking Member for the Committee on Mines and Energy, revealed that 530 MW of power was lost on Wednesday, resulting in widespread power cuts and supply reductions to neighboring countries. Jinapor cited a lack of funds to purchase fuel as a major factor contributing to the power crisis. He also highlighted the shutdown of some Thermal plants, warning that the country’s power sector is on the brink of collapse. The ongoing power outages have raised concerns among Ghanaians, with calls for urgent action to address the root causes of the problem and avoid further disruptions to the electricity supply. Apexnewsgh.com/Ghana/Ngamegbulam Chidozie Stephen Please contact Apexnewsgh.com on email apexnewsgh@gmail.com for your credible news publications. Contact: 0256336062.

Business

Electricity and Water bill up by 21 and 27.15 percent

Public Utilities and Regulatory Commission (PURC) have increased Water and electricity tariffs by 21 percent and 27.15 percent in that order. The new tariff increase is expected to take effect from Thursday, 1 September 2022. Meanwhile, the increase came as a result of the proposal by the Electricity Company of Ghana (ECG) and the Ghana Water Company (GWCL) a few months ago. Earlier per their proposal, ECG proposed an increase of 148 percent. It also wanted tariffs adjusted by 7.6 percent on average between 2023 and 2026. According to the ECG, the proposed increase was a result of the gap between the actual cost recovery tariff, the tariff approved by the Public Utilities Regulatory Commission (PURC) and the cost of finished projects. In a tariff proposal presented to the PURC, the GWCL also proposed an increase in tariff to enable it to recover its cost. Both utility companies raised concerns about the PURC’s refusal to adjust tariffs to match the cost of their production. “The financial sustainability of the Electricity Company of Ghana is important as it impacts on the entire energy sector. With the huge investment needs facing the distribution industry over the next five years, it is expected that the proposed tariff increases would inevitably be approved to sustain efficient and reliable electricity service,” the ECG noted. It continued: “Overall, this tariff proposal indicates a high increase (148%) in the year 2022 compared with the subsequent years’ increases of an average of 7.6%. This high increase in 2022 is largely attributable to the cost of investment projects; the gap that has developed over the years between the actual cost recovery tariff and the PURC approved tariffs; the continual application of the prevailing tariff (which was a 14% reduction) beyond the stipulated regulatory period (2019-2020); and the effect of macroeconomic factors.” The GWCL also noted: “It must at least recover its costs if we are to sustain our operations. Over the years, however, the approved tariffs have not been full cost reflective”. “This has led to the inability of GWCL to raise enough revenue to finance the much-needed capital investment projects, with a consequent unsatisfactory level of service.” Source: Apexnewsgh.com

Opinion

Probe 5-year-old $40m abandoned ECG metres at ports – MP

Majority Whip Frank Annoh Dompreh is demanding an investigation relating to some containers full of electricity prepaid meters that have allegedly been left to rot at the country’s ports for the past five years. The Meters were procured by ECG at a cost of $40 million in 2016. Bemoaning the situation, the Member of Parliament for Nsawam-Adoagyir constituency in the Eastern Region, said this is happening at a time that electricity meters are in high demand in the country. The lawmaker raised these concerns in an interview with the parliamentary press corps in Accra. The MP, who is also a Board Member of the Electricity Company of Ghana (ECG), explained that the situation is generating public discomfort. “For a valuable material, which is in high demand to be left to rot at ports for close to five years is worrying,” he said. He further urged the Attorney General and Minister of Justice, Mr Godfred Dame, to pursue the matter to its logical conclusion. He also appealed to him to ensure finality is brought to the matter.

Business

Kwadwo Poku: RE- The biggest procurement fraud in the acquisition of $36m electric meters

In 2016, the Ministry of Power through the Ministry of Finance made a payment of USD $36 million to L & R Investment and Trading Company Limited, for the supply of single-phase and three phase electric meters to ECG. The total contract price for the supply of these meters were USD $39,999,566.44, to be supplied over a period of twenty-six (26) weeks. When the contract was signed, an advanced payment of USD $ 12 million was paid to L & R Investments plus a Letter of Credit (LC) of USD $24 million. The Institute for Energy Policies and Research (INSTEPR) was doing an investigation into procurement lapses at the Electricity Company of Ghana (ECG) after the recently published Auditor-General report. Electric meters procured for customers were found in the warehouse of ECG while customers across the country are in dire need of these meters. We learnt that not all the meters in the ECG warehouse are ready to be supplied to the customer, so we asked why? The Background: In September 2016, the Ministry of Power wrote to the Managing Director of ECG, informing him of a USD $80 million financing secured by the Government for the procurement of electric Meters. The letter stated that local Ghanaian companies will be given USD $40 million and Messrs. L & R Investments and Trading Company whose local representatives are Messrs. First Grace Limited, be given USD$40 million. The Ministry letter instructed the managing director of ECG to initiate discussion with the said suppliers with the view of entering into contract for the supply of these electric meters. The Ministry also asked for immediate response to their letter to facilitate cabinet and parliamentary approval. The Management of ECG on their part upon receipt of the Ministry letter engaged Messrs. L & R Investments and Six (6) local Ghanaian companies. After ECG had and evaluated the proposal from L & R Investment, a pre-contract meeting was held in October 2016, between the technical team of ECG and the Managing Director, in the name of Mr. Tao Wenhui for L & R Investment. At this meeting, the Scope of Supply, Technical Classification, Due Diligence, Pilot Studies, Factory Acceptance Tests (FAT) and Training of ECG metering Staff were discussed and agreed. The two key conditions before the supply of the meters after signing the contract were the Pilot study to assess the meters for 2 months and the Factory Acceptance Tests (FAT). After the contract was signed and L & R given an initial payment of USD $12 million, the meters that were to be provided as samples (200 electric meters) for the Pilot studies were not sent to ECG and the agreed travel of 3 representative from ECG to undertake the Factory Acceptance Tests in China before the manufacturing of the said meters did not take place. Without any of these conditions being met, the management of ECG was sent shipping documents for containers of meters at Tema Port. ECG informed L & R Investment that they cannot accept the containers because they have not followed the process agreed to as per their contract. After months of back and forth with L & R Investments, the containers of Meters were cleared from the Tema port to stop the accrual of demurrage. The meters in the containers were not the specification as per the supply contract. INSTEPR was told that the said contract was terminated in 2017 after legal consultations on the non-performance by L & R Investment. This company after months of not conforming to the agreed conditions of their contract, went ahead to discount the USD $24 million Letter of Credit (LC) given to them under the contract. We have sighted documents that state that on the 16th of August 2017 at a time when Capital Bank Limited had ceased to be a bank under the laws of Bank of Ghana, Capital Bank discounted the LC and made a payment of USD $22.5 million to L & R Investment. INSTEPR conclusion and questions: INSTEPR contacted the officials of ECG to ascertain further and better particulars on this transaction, we were informed that all documents relating to this transaction is with EOCO and National Security. Our further checks revealed that EOCO and National Security have been investigating this transaction since 2017. Our questions are very simple: Why has it taken 4 years for the State Security Agencies in investigating this transaction? Who are the people behind L & R Investment and Trading Company in Ghana? The initial USD $12 million was paid to First Grace Limited, who are the people behind this company? Why is the management of Capital Bank Limited not being prosecuted for the illegal discounting of the Letter of Credit? We do not want to draw any conclusion since this matter is still under investigation, but I am sure every Ghanaian will agree with me that we need some answers and accountability now from our leaders on this fraudulent transaction. There is no way this transaction was done by the average Joe on the street. INSTEPR is still probing various procurement breaches at ECG. – The author, Kwadwo Poku is Executive Director for Institute for Energy Policy and Research. Source: Kwadwo Poku Please contact Apexnewsgh.com on email apexnewsgh@gmail.com for your credible news publications. Contact: +2335555568093

Business

ECG thanked all stakeholders for their cooperation, as they announced end of dumsor in Accra

The Electricity Company of Ghana thanked stakeholders in an announcement to end an eight-day power interruption in parts of Accra. Earlier, the company announced the need to interrupt the power supply for eight (8) days from Monday, May 10 to Monday, May 17, to allow the tie-in of the newly constructed Pokuase Bulk Supply Point (BSP) to GRIDCo’s 330kV transmission line. In a statement Tuesday the company said” the Electricity Company of Ghana (ECG) wishes to inform the general public especially the affected customers that the programme has ended today Tuesday, 18th May 2021 at 6.00 am.” The statement went on “this project forms part of efforts to improve power supply reliability and system voltages.” “ECG wishes to thank all stakeholders for their cooperation during the exercise. Other needed interruptions in power supply to enable contractors to complete the next project, the Kasoa Bulk Supply Point (BSP), will be communicated in due course,” it ended. Please contact Apexnewsgh.com on email apexnewsgh@gmail.com for your credible news publications. Contact: 05555568093

Business

Mutawakilu kicks against proposed tariff increment

A former ranking Member of Parliament’s Mines and Energy Committee, Adam Mutawakilu has rubbished proposals by the Electricity Company of Ghana (ECG) for tariff increment. He says the ECG has not demonstrated its capacity to effectively manage its resources hence there is no justification for an increment in tariffis. Speaking on Eyewitness News, the former Damongo legislator said ECG is undeserving of an increment if it is unable to prove how it is tackling the about 25% losses it suffers to technical and commercial issues. “How much of our monies is being lost? If that is not tackled, then we are wasting our time on this. They are just taking money from Ghanaians and wasting it. Technical and commercial losses alone is over 25% and that means that for every 100 million that ECG is expected to collect, they can’t account for 25 million of it. So if we only concentrate on increasing tariff without reducing technical and commercial losses, we will come back to square one,” he said. Adam Mutawakilu said the government had a good chance to tackle the inefficiencies leading to losses the ECG suffered through the PDS deal but it “messed it up.” He said the deal would have to ensure that the ECG’s infrastructure is improved and service delivery made better, but that did not happen. He said it was unfair to make consumers pay more for power when they do not enjoy improved service. “Should the consumer always be the punching bag? I have not seen how previous increments have helped reduce the technical and commercial losses,” he noted. The Managing Director of the company, Kwame Agyeman-Budu at a public forum on Thursday, April 8, 2021, said ECG needs more resources to improve its service. He said while he is aware that the proposal will only materialize after approval from the Public Utilities and Regulatory Commission (PURC), he believes that it is critical for ECG to have access to more funds to enable it to operate efficiently. “We need money to do it [improve]. If we get the increase we will love it [but] that will be up to the PURC because, no matter what we propose, they will ultimately decide,” he said. “In terms of distribution, we need support, because we have to do upgrades to make sure the system is sustainable. We don’t wait till something is broken before we fix it. We need additional funds to upgrade our systems at all times,” he added. Citinewsroom Please contact Apexnewsgh.com on email apexnewsgh@gmail.com for your credible news publications. Contact: 0555568093

Business

We need money – ECG

The Managing Director of the Electricity Company of Ghana (ECG), Kwame Agyeman-Budu has said the company needs money to carry out its operation duties. He said this at a public forum in Accra on Thursday, April 8, 2021. “We need money to do it [improve]. If we get the increase we will love it [but] that will be up to the PURC because, no matter what we propose, they will ultimately decide,” he said. He added “In terms of distribution, we need support, because we have to do upgrades to make sure the system is sustainable. We don’t wait till something is broken before we fix it. We need additional funds to upgrade our systems at all times.” Energy Minister Dr Mathew Opoku Prempeh for his part revealed that there is going to be systematic power outgases in in the country in May this year. “Just two days ago, I received a letter from Millennium Development Authority (MiDA), [the company which is helping with the upgrade of the Pokuase and Kasoa substations] informing me in the month of May, there is going to be systematic power outages. “So we have invited ECG [Electricity Company of Ghana] and GRIDCo [Ghana Grid Company Limited] that in the light of this information we sit and plan and communicate to the people who will be affected way before it happens,” he said. He added “In all of these instances it is only appropriate that managers of the power sector communicate such reasons timeously to the public in order for people to plan their lives accordingly.” He had earlier assured the country that the technical issues that have resulted in power cuts to some areas especially in the capital city will be fully resolved by end of the year. Dr Prempeh told journalists on Tuesday April 6 when he paid a working visit to the Ghana Grid Company (GRIDCo) that “We are working feverishly to resolve the challenges which have arisen as a result of technical difficulties with our transmission lines and it is our hope that, that issue will be resolved by the end of the year,” He further said that most of the transmission lines are old and haven’t seen any changes. “These our lines that we have just been informed about, were strung in the 50s and some in the 60s. The power it was supposed to transmit to Accra has increased tremendously due to the expansion of Accra yet the lines have remained the same. “They are now giving us lines that can improve the power situation in Accra,” he said. He stated that the country is not back to the ‘dumsor’ era. “We should all be sincere and truthful in our communication. In 2016, the whole country was given periods when we are to receive power and when to be off. In 2016, the government of the day told us it was a generation problem. “Even the opposition then said government did not have money to buy fuel to power the generators. This is not a generation problem, this is not about fuel so how can we call it “Dumsor”?” he queried. 3news Please contact Apexnewsgh.com on email apexnewsgh@gmail.com for your credible news publications. Contact: 0555568093

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ECG Violates Revised Cash Waterfall Mechanism, PURC Reports

ECG Managing Director Apologizes For Recent Power Outages

Electricity and Water bill up by 21 and 27.15 percent

Probe 5-year-old $40m abandoned ECG metres at ports – MP

Kwadwo Poku: RE- The biggest procurement fraud in the acquisition of $36m electric meters

ECG thanked all stakeholders for their cooperation, as they announced end of dumsor in Accra

Mutawakilu kicks against proposed tariff increment

We need money – ECG

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