Grapevine

PURC warns of ECG’s potential bankruptcy in a letter to Presidency and Energy Minister

The Public Utilities Regulatory Commission (PURC) has served notice that the Electricity Company of Ghana (ECG) may be on the verge of bankruptcy due to severe financial difficulties.

In a letter addressed to the Presidency, the Energy and Finance Ministers, and other key stakeholders, PURC's Executive Secretary, Dr Ismael Ackah, highlighted the crisis that is also impacting the operations of the Volta River Authority (VRA), Ghana Grid Company (GRIDCo), and the Bui Power Authority.

According to Dr Ackah, these challenges have led to delays in salary payments and difficulties in covering administrative costs, underscoring the urgency for immediate action.

Despite efforts to improve cash collection through digital and metering programmes and significant tariff increases of over 75% since September 2022, ECG's financial instability persists.

Financial Crisis at ECG