The Public Utilities Regulatory Commission (PURC), has announced in its latest validation report that the Electricity Company of Ghana (ECG) has fully adhered to the Cash Waterfall Mechanism (CWM) for April 2024 payments.
This marks the second instance of full compliance, the first being in March 2024.
This compliance follows intense scrutiny and criticism from both the media and the PURC, which have been vocal about ECG’s failure to fully comply with the CWM since its revision in August 2023.
According to the report, ECG garnered total revenue of GHS 832.6 million for April 2024, which was allocated to settle invoices from February 2024.
“The CWM application for April 2024 payments was based on invoices submitted for February 2024. The total ECG revenues reported for April 2024 was GHS 832,600,000.00.”
Of this revenue, ECG disbursed GHS 595.8 million ($49 million) to six Independent Power Producers (IPPs) and the West African Gas Pipeline Company (WAPCo).
This payment represents a substantial 71% of ECG’s total revenue for the month, up from 62% in the previous month.
The remaining GHS 207.1 million, after accounting for payments to the IPPs and statutory obligations, was distributed among Level B beneficiaries.
These beneficiaries include state-owned enterprises such as the Volta River Authority (VRA), Bui Power Authority, Ghana National Gas Company, regulators, some power generators, and ECG itself.
Notably, for the second time since the implementation of the revised CWM, ECG fully compensated all Level B beneficiaries in March 2024. This marks a significant departure from its previous record of incomplete payments, and in some instances, no payments at all, to these entities.
However, the Ministry of Finance, which is obligated to cover any shortfalls, has not fulfilled this responsibility since August 2023. The shortfall for March 2024 stands at GHS 215.9 million. The PURC is currently in discussions with the Ministry to ensure these obligations are met.
“The Commission wishes to state that engagement is still ongoing to ensure MoF takes the necessary steps to honour its obligation by paying for the shortfalls.”
ALSO READ: