The Electricity Company of Ghana (ECG) has been found in violation of the revised Cash Waterfall Mechanism (CWM), as reported by the Public Utilities Regulatory Commission (PURC).
The updated CWM, which took effect in August 2023 under President Nana Addo Dankwa Akufo-Addo’s directive, was designed to enhance financial stability in Ghana’s energy sector.
According to the PURC, the revised guidelines mandated ECG to make monthly payments to stakeholders based on a model intended to ensure transparency and fairness in revenue distribution.
However, ECG’s failure to adhere to these standards has raised significant 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 stated.
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.
Source:classfmonline.com