Energy Analyst Kwadwo Nsafoah Poku has urged the establishment of legal mechanisms that would empower the Public Utilities Regulatory Commission (PURC) to levy fines on board members of utility companies for underperformance.
This call comes in the wake of a controversial GH¢5.8 million penalty imposed by the PURC on the board of directors of the Electricity Company of Ghana (ECG), triggering a legal debate.
During a recent discussion on The Big Issue with Serlorm Adonoo on April 20, Mr. Poku reiterated his longstanding advocacy for granting the regulator greater enforcement authority.
He highlighted a persistent concern regarding the current legal constraints, which suggest that the PURC lacks the mandate to directly fine individual board members. Instead, fines are directed at the company itself, bypassing the accountability of board members.
Mr. Poku emphasised, “For a long time, we have been trying to say that the regulator should be able to bite. We’ve always said that the regulator should be more proactive in trying to get the ECG and other utility companies to do the right thing.
“Unfortunately, we’ve heard the legal argument that the PURC is not clothed with the right law to be able to fine board directors but the fine has to go to the company. This is because the address was to the company and not to the board of directors and before you can fine somebody, you should give them a fair hearing.”
While acknowledging the present legal limitations, Mr. Poku stressed the necessity of revising existing policies to empower the PURC in holding board members accountable for their actions or inactions.
He added that although the current circumstances may limit the PURC’s authority, this should signal the need for regulatory reform. According to him, the energy sector must prioritise legal amendments to enable the PURC to enforce accountability measures effectively in the future.”
