The Public Utilities Regulatory Commission (PURC) has reported that the Electricity Company of Ghana (ECG) is in violation of the revised Cash Waterfall Mechanism (CWM).
Implemented in August 2023 under President Nana Addo Dankwa Akufo-Addo’s directive, the CWM was designed to strengthen financial stability in Ghana’s energy sector.
The new guidelines require ECG to make monthly payments to stakeholders, promoting transparency and equitable revenue distribution.
ECG’s failure to comply with these regulations has raised serious concerns.
“Following the adoption of the revised CWM, ECG was expected to make monthly payments to stakeholders according to the approved model.
“Since the inception of the revised CWM, ECG has not complied with the guidelines as directed by the president, thus undermining the purpose of fair and equitable revenue allocation to sector players,” the PURC said.
The commission criticised ECG for its lack of transparency and consistency in revenue payments, attributing these issues to the worsening financial stability of the sector and declining service quality.
“The lack of transparency and consistency in the payment of collected revenues has burdened the sector with worsening financial sustainability and deteriorating service quality,” the PURC added.