ECG fully complies with Cash Waterfall Mechanism for the second time

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

The report indicates that ECG generated total revenue of GHS 832.6 million in April 2024, 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.”

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 distributed among Level B beneficiaries, including 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 revised CWM implementation, ECG fully compensated all Level B beneficiaries in March 2024, a significant improvement from its previous record of incomplete or non-payments to these entities.

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

The shortfall for March 2024 stands at GHS 215.9 million. The PURC is actively engaging 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.”

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