ECG Insolvency Report: Alfred Kumi calls for constructive leadership from PURC

A political commentator and aspiring leader within the NPP, Alfred Ababio Kumi has raised concerns about the recent Cash Waterfall Mechanism (CWM) review released by the Public Utilities Regulatory Commission (PURC).

This comes after the Commission raised red flags regarding an impending insolvency of the Electricity Company of Ghana (ECG) due to its ongoing financial woes.

In a post shared via X (formerly X), Kumi emphasised the need for clarity and constructive leadership from the PURC, particularly in the run-up to the upcoming general election.

He questioned the framing of essential fuel costs as a “variance” in the PURC report, calling it misleading and potentially damaging to the perception of the Electricity Company of Ghana (ECG).

Kumi argued that such costs are a fundamental part of ECG’s operations and have been managed effectively by the current leadership, which he believes should be recognized rather than criticized.

“Unlike in previous years, ECG has taken significant strides to secure fuel independently, which is a remarkable achievement given the company’s past struggles. This is not a variance but a necessary operational cost that ensures stable power supply for Ghanaians,” Kumi wrote on X.

He mentioned that ECG has complied fully with payments to Tier 2 beneficiaries, including the PURC itself, during the period under review.

The political commentator said that delays in payments to some Independent Power Producers (IPPs) were due to the need to settle outstanding balances from previous months, a standard practice in the sector that should not be misconstrued as non-compliance.

Additionally, he called on PURC to provide more comprehensive explanations in its reports to prevent any misunderstandings.

“The discrepancy between the exchange rates used by PURC and the actual market rates has led to forex losses that are beyond ECG’s control. This is not a failure on ECG’s part but a challenge that needs to be addressed with the right support and understanding from all stakeholders,” Kumi explained.

“As we approach the upcoming elections, the energy sector will be crucial in shaping Ghana’s future. It is essential that regulatory bodies like the PURC provide clear, constructive feedback and support the progress being made. This is not the time for divisive narratives,” he urged.

PURC’s Approach to the CWM Review: A Need for Clarity and Constructive Leadership

As Ghana approaches a pivotal national election, the role of institutions such as the Public Utilities Regulatory Commission (PURC) becomes increasingly crucial. It is therefore disappointing to… pic.twitter.com/0HkQzk277q

— Alfred Ababio Kumi (@adentaKumi_) September 19, 2024