The Public Utilities Regulatory Commission (PURC) has directed the Electricity Company of Ghana to disburse monies from the Cash Waterfall Mechanism (CWM) by March 25, 2024, according to Dr. Eric Obutey, Head of Research and Corporate Affairs at PURC.
He explained that the CWM is a system intended to allocate the profits from the sale of electricity in a proportionate manner to the appropriate market participants in the energy industry who are involved in the supply chain for electricity.
The process was not working well, according to Dr. Obutey, who made this revelation in an Eyewitness News interview with Umaru Sanda Amadu on Citi FM on Tuesday. As a result, the commission asked for an update and compliance with the mechanism by March 25.
“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.
“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 went on to say “The other one has to do with the transformers that they said are overloaded in the system that ECG said they are replacing. They should give us more information on that and some of the issues pertaining to the operational matters that ECG itself has come up with.”
