The Public Utilities Regulatory Commission (PURC) has announced in its latest validation report that the Electricity Company of Ghana (ECG) has fully adhered to the Cash Waterfall Mechanism (CWM) for March 2024 payments.

This compliance follows intense scrutiny and criticism from both the media and the PURC, which have been vocal about ECG's failure to fully comply with the CWM since its revision in August 2023.

According to the report, ECG garnered a over GHS 1 billion for March 2024, which was allocated to settle invoices from January 2024.

Of this revenue, ECG disbursed GHS 620 million ($52 million) to seven Independent Power Producers (IPPs) and the West African Gas Pipeline Company (WAPCo). This payment represents a substantial 62% of ECG's total revenue for the month.

"The CWM application for March 2024 payments was based on invoices submitted for January 2023.
The total ECG revenues reported for March 2024 was GHS 1,002,850,000.00," the report stated.

The remaining GHS 334.8 million, after accounting for payments to the IPPs and statutory obligations, was distributed among Level B beneficiaries. These beneficiaries include state-owned enterprises such as the Volta River Authority (VRA), Bui Power Authority, the Ghana National Gas Company, regulators, some power generators, and ECG itself.

Notably, for the first time since the implementation of the revised CWM, ECG fully compensated all Level B beneficiaries in March 2024. This marks a significant departure from its previous record of incomplete payments to these entities.

However, the Ministry of Finance, which is obligated to cover any shortfalls, has not fulfilled this responsibility since August 2023.

The shortfall for March 2024 stands at GHS 159.9 million. The PURC is currently in discussions with the Ministry to ensure these obligations are met.

"The Commission wishes to state that, MoF has not made up for the shortfalls since August 2023," it stressed.