ECG might collapse if it complies fully with Cash Waterfall Mechanism – Atta Akyea
Chairman of the Energy Committee of Parliament and MP for Abuakwa South constituency, Samuel Atta Akyea says that full compliance with the Cash Waterfall Mechanism (CWM) could potentially lead to the collapse of the Electricity Company of Ghana (ECG).
He clarified that the Cash Waterfall Mechanism, while not enshrined in legislation, is a government policy outlining how ECG should manage its financial affairs.
Mr Akyea stated that ECG faces a revenue shortfall despite its efforts, resulting in insufficient funds to cover the services it provides.
He emphasised that if the Cash Waterfall Mechanism is pushed to prioritise certain power companies, leaving minimal resources for ECG to function, the implications would be dire.
“If we are not careful and we comply fully with the Cash Waterfall Mechanism, ECG will comatose because it doesn’t generate enough money to be operational,” he said on Saturday, March 30.
He added, “You wouldn’t want to have a policy which is so stringent that ECG with all the challenges complying fully with the Cash Waterfall Mechanism will run aground and then have double trouble.”
The MP for the Abuakwa South constituency argues that he supports the actions of the Public Utilities Regulatory Commission (PURC) in directing the ECG to furnish a detailed report of its operations.
“The regulator is actually a creator of law. If you pay regard to Act 538, there is nothing that PURC is doing which is untoward.”
However, he stressed that the PURC should be careful regarding its approach to mechanical issues so that ECG will not collapse.
Meanwhile, Mr Akyea has urged the Electricity Company of Ghana to release a schedule for the current power outages.
According to him, there is no prior notice from ECG as electricity goes off abruptly, causing significant disruptions, emphasisng that the availability of a timetable would enable people to anticipate and adjust to unstable electricity, allowing them to plan their activities in advance.