The Electricity Company of Ghana (ECG) has disbursed over one billion cedis to beneficiaries under the Cash Waterfall Mechanism (CWM) for March 2024. This significant milestone was revealed in a report released by the Public Utility Regulatory Commission (PURC), based on January invoices, showing that ECG realized a revenue of approximately GHS1.002 billion.
The accrued lump sum was disbursed to both categories A and B within the CWM framework. Category A beneficiaries received the Ghana cedi equivalent of $52 million, while those in category B received about GHS334 million. The report further revealed that ECG paid 100% to both categories, with no debt accrued in March. This full payment by ECG fosters debt sustainability in the power sector, as the government will now only need to address historical debt and its contributions to the CWM.
The introduction of the CWM in July 2023 was a crucial move aimed at ensuring prompt disbursement of revenue within the power sector. The PURC had previously pressed charges and fines against members of the ECG Board for failing to ensure the timely disbursement of funds under the CWM framework. This recent development marks a significant improvement and adherence to the established mechanisms.
Benjamin Nsiah, Executive Director of the Centre for Environmental Management and Sustainable Energy (CEMSE), commended ECG for meeting its obligations under the CWM. “This is the first time since the introduction of the CWM that ECG has fully honored its obligations, and for that, they need to be commended for taking into consideration constructive criticism,” Mr. Nsiah stated.
Mr. Nsiah also emphasized the importance of maintaining this momentum. “We hope that future payments within the framework of CWM by ECG are fully completed to ensure sustainable power supply to households and businesses,” he added.
The successful disbursement under the CWM framework underscores ECG’s commitment to improving financial management and operational transparency. This development is expected to bolster confidence among stakeholders and contribute to a more reliable power supply across Ghana.
As ECG continues to meet its financial obligations, it sets a precedent for accountability and effective governance in the power sector, paving the way for enhanced service delivery and sector-wide sustainability.
