Ghana power utility chief resigns amid financial struggles and power outages

Samuel Dubik Mahama, the managing director of the Electricity Company of Ghana (ECG), has resigned, citing personal reasons. 

His resignation comes as the company grapples with financial instability and public discontent over recent power supply disruptions, reports Joy News.

In a letter addressed to the ECG board chairman, Mahama expressed deep reflection behind his decision to step down.

“I am writing to formally resign from my position as managing director of the Electricity Company of Ghana, effective two weeks from today. The decision has not come easily, but after much reflection, I have concluded that it is in my best interest to step away for personal reasons,” Asaase News quoted Mahama’s resignation letter as saying in part.

He added, “Over the past two years and four months, I have had the profound honour of serving this esteemed organisation. I am truly grateful for the opportunities I have received.”

Mahama, who was appointed by President Nana Akufo-Addo in May 2022 following the retirement of his predecessor Kwame Agyeman-Budu, acknowledged the support he received from the ECG board and the President.

His resignation follows mounting challenges at the state utility, which has been under scrutiny for its financial woes. The Public Utilities Regulatory Commission (PURC) recently warned of a potential bankruptcy at the company, stemming from issues related to the Cash Waterfall Mechanism (CWM). These financial troubles have also affected key power institutions, including the Volta River Authority (VRA), the Ghana Grid Company (GRIDCo), and the Bui Power Authority.

In a letter to the Presidency, the Energy Minister, the Finance Minister, and other stakeholders, PURC’s Executive Secretary, Ismael Ackah, outlined the severity of the crisis, which has led to delays in salary payments and difficulties covering operational costs.

Despite efforts to boost revenue through digital and metering programmes and significant tariff hikes - amounting to over 75% since September 2022 - ECG's financial problems have persisted.

Power outages add to woes

Mahama's departure also coincides with widespread power outages across Ghana, further exacerbating public dissatisfaction. ECG, along with GRIDCo, issued a statement on September 23 explaining that disruptions in power supply were due to technical challenges at the Ghana National Gas Company’s (GNGC) Gas Processing Plant in Atuabo, which has reduced gas supplies needed for power generation.

The two companies apologised for the ongoing blackouts, assuring the public that engineers were working to resolve the issue. 

"We apologise unreservedly for the inconveniences caused to the public as a result of this challenge," read the joint statement from GRIDCo and ECG.

They added that normal power supply would resume once the problems at the Atuabo plant were rectified.