ECG Fully Adheres to Cash Waterfall Mechanism for the Second Consecutive Time

The Public Utilities Regulatory Commission (PURC) has confirmed that the Electricity Company of Ghana (ECG) fully complied with the Cash Waterfall Mechanism (CWM) for April 2024 payments, marking the second consecutive instance of full compliance following March 2024.

According to the report, ECG reported total revenue of GHS 832.6 million in 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. ECG’s total revenue reported for April 2024 was GHS 832,600,000.00.”

From this revenue, ECG disbursed GHS 595.8 million ($49 million) to six Independent Power Producers (IPPs) and the West African Gas Pipeline Company (WAPCo), representing 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 allocated to Level B beneficiaries. These 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.

It is noteworthy that ECG fully compensated all Level B beneficiaries in March 2024 for the second time since the revised CWM implementation. This marks a significant improvement compared to previous instances of incomplete or non-payments to these entities.

However, the Ministry of Finance, responsible for covering any shortfalls, has not fulfilled this obligation since August 2023.

“The shortfall for March 2024 amounts to GHS 215.9 million. The PURC is currently in active discussions with the Ministry to ensure these obligations are fulfilled.

“The Commission emphasizes that ongoing engagement aims to prompt the Ministry of Finance to fulfill its responsibility by settling the outstanding shortfalls.”