The Public Utilities Regulatory Commission (PURC) says the Electricity Company of Ghana (ECG) acted irresponsibly when it used part of the money accrued under the cash waterfall mechanism to purchase fuel to generate power.

The decision, which left the Volta River Authority (VRA) and the Ghana Grid Company (GRIDCo) cashless under the mechanism between November 2023 and January 2024, is said to be impacting negatively on the operational capacity of the two entities.

The PURC has issued a one-week ultimatum to ECG to respond to a set of demands and warned that it may resort to sanctions if the demands are not met.

Director of Regional Operations and Consumer Services with the Commission, Alhaji Jabaru Abubakar told JoyNews' Elton Brobbey that the ECG cannot operate on their own terms.

He also spoke on the speculation that there is a turf war behind the public spat by the PURC and ECG in recent times.

"Let me make it clear that it is not supposed to be done that way. The cash waterfall you are supposed to collect the money and pay everybody within the value chain is on to an individual disco to determine how he appropriates whatever resources have come in.

"So now if we are putting the information to the point that something is being paid outside the cash waterfall mechanism, then that is strange to the regulator because we all know that this is the mechanism that we have in place," he said.

Alhaji Jabaru Abubakar said they are simply executing their responsibility as a regulator. He stressed that there was a system, and the ECG, as the distributor, was supposed to plan its role for the system to function as it should.

"You see we, have a value chain collect the money give everybody in the value chain let GRIDCo be able to maintain their system let it take your portion and maintain your system it is not for you to appropriate to every individual how might these patients you get or they do it deserve it or not deserve it in respect of what in what," he added.

Energy analyst, Kwame Jantuah wants a body to mediate and resolve the differences between the two entities.

"ECG cannot clash with PURC. It is just like telling you that a civilian is clashing with a police person. We are their police. And you owe a duty to respect the police at every point in time until you go to the law court or otherwise.  No, we are getting demand that the right thing should be done. That is all. It has started to do with personality clashes." he said

The Mines and Energy Committee in Parliament has since summoned the Energy Minister and managing director of ECG over the recent public spat.