The Electricity Company of Ghana (ECG) has found itself in hot water with the Public Utilities Regulatory Commission (PURC) over its failure to comply with the revised Cash Waterfall Mechanism (CWM). Apexnewsgh reports
Introduced in August 2023 under President Nana Addo Dankwa Akufo-Addo’s directive, the CWM aimed to boost financial stability in Ghana’s energy sector by ensuring transparency and fairness in revenue distribution.
However, the PURC’s report reveals that ECG hasn’t made monthly payments to stakeholders as required, sparking concerns about the company’s commitment to transparency and fairness. The PURC stressed that ECG’s non-compliance undermines the purpose of the CWM, which is to allocate revenue fairly among sector players.
The commission also criticized ECG for its inconsistent and opaque payment practices, citing these issues as major contributors to the sector’s dwindling financial stability and declining service quality. “The lack of transparency and consistency in revenue payments has severe consequences, including worsening financial sustainability and deteriorating service quality,” the PURC warned.
It’s worth noting that ECG has since shown improvement in complying with the CWM, as reported by the PURC for March 2024 payments. However, the company must sustain this progress to regain stakeholder trust and ensure a stable energy sector.
Apexnewsgh.com/Ghana/Ngamegbulam Chidozie Stephen
Please contact Apexnewsgh.com on email apexnewsgh@gmail.com for your credible news publications. Contact: 0248250270/0256336062.
Key Concerns:
– Lack of Transparency: ECG’s inconsistent payment practices hinder transparency in revenue distribution.
– Inequitable Revenue Allocation: Non-compliance with CWM guidelines undermines fair revenue allocation among sector players.
– Declining Service Quality: Inconsistent payments impact the overall quality of services provided by ECG.
The PURC’s findings serve as a wake-up call for ECG to rectify its payment practices and prioritize transparency, fairness, and financial stability in Ghana’s energy sector.
