PURC directs ECG to disburse funds from Cash Waterfall Mechanism by March 25
Dr. Eric Osabutey
Dr. Eric Obutey, the Head of Research and Corporate Affairs at the Public Utilities Regulatory Commission (PURC), has announced that the commission has instructed the Electricity Company of Ghana (ECG) to distribute funds from the Cash Waterfall Mechanism (CWM) by March 25, 2024.
Read full articleIn an interview on Citi FM's Eyewitness News, Dr. Obutey explained that the CWM is a system devised to distribute revenues from electricity sales among key players in the energy sector involved in the electricity supply chain.
He highlighted concerns about the mechanism's inefficiency, prompting the commission to request an update and adherence to the mechanism's guidelines by the specified deadline.
"The cash waterfall mechanism is a system whereby monies that have been collected in the sector are distributed among the sector players from generators through transmission through to distribution. So that mechanism is not found to be working effectively," Dr. Obutey clarified.
"So, we told them to give us an update on that mechanism and to comply with the mechanism the way it is supposed to be distributed by March 25," he added.
Additionally, Dr. Obutey emphasized the need for more information regarding overloaded transformers in the system, which the ECG claims to be replacing, as well as operational issues raised by the ECG itself.
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