The Public Utilities Regulatory Commission (PURC) announced in its latest validation report that the Electricity Company of Ghana (ECG) has fully complied with the Cash Waterfall Mechanism (CWM) for March 2024 payments.
This compliance comes after intense scrutiny and criticism from both the media and the PURC, which have been vocal about ECG’s failure to fully adhere to the CWM since its revision in August 2023.
The report indicates that ECG collected over GHS 1 billion for March 2024, which was used to settle invoices from January 2024.
From this revenue, ECG disbursed GHS 620 million ($52 million) to seven Independent Power Producers (IPPs) and the West African Gas Pipeline Company (WAPCo), representing a substantial 62% of ECG’s total revenue for the month.
“The CWM application for March 2024 payments was based on invoices submitted for January 2023.
The total ECG revenues reported for March 2024 was GHS 1,002,850,000.00,” the report stated.
The remaining GHS 334.8 million, after payments to the IPPs and statutory obligations were accounted for, was distributed among Level B beneficiaries. These beneficiaries include state-owned enterprises such as the Volta River Authority (VRA), Bui Power Authority, the Ghana National Gas Company, regulators, some power generators, and ECG itself.
Interestingly, March 2024 witnessed ECG fully compensating all Level B beneficiaries for the first time since the revised CWM came into effect. This signifies a notable shift from its prior pattern of incomplete payments to these entities.
However, despite the Ministry of Finance being responsible for covering any shortfalls, it has not fulfilled this duty since August 2023.
The deficit for March 2024 amounts to GHS 159.9 million. The PURC is presently engaging with the Ministry to ensure these obligations are honored.
“The Commission wishes to state that, MoF has not made up for the shortfalls since August 2023,” it stressed.