The Public Utility Regulatory Commission has cited the Electricity Company of Ghana (ECG) for non-compliance with the revised Cash Waterfall Mechanism (CWM).
The Cash Water Mechanism was designed to enhance financial stability within Ghana’s energy sector.
ECG was required by law to make monthly payments to various stakeholders based on an approved model aimed at promoting transparency and financial fairness.
However, the PURC says the company has failed to abide by these directives.
“Following the adoption of the revised CMW, ECG was expected to make monthly payments to the stakeholders based on the approved monthly model. However, since the inception of the revised CWM, ECG has not complied with the guidelines of the new CWM as directed by the president, thus, defeating the purpose of the fair and equitable revenue allocation to sector players,” part of the statement issued by the PURC said.
The Regulatory Commission stated that the lack of transparency and consistency in revenue payments has worsened the financial sustainability of the sector and negatively impacted the quality of service delivery.
“The lack of transparency and consistency in the payment of collected revenues over the period has burdened the sector with continual deteriorating financial sustainability and worsening quality service delivery, however, the under-listed performance challenges have negatively affected the implementation.”
Below is the full statement from the PURC
By: Rainbowradioonline.com/Ghana
