Dr Eric Obutey, the Head of Research and Corporate Affairs at the Public Utilities Regulatory Commission (PURC), has stated that the commission has instructed the Electricity Company of Ghana to distribute funds from the Cash Waterfall Mechanism (CWM) by March 25, 2024.
He clarified that the CWM is a system designed to distribute the revenues from electricity sales proportionately among the relevant market players in the energy sector involved in the electricity supply chain.
Dr Obutey said in an Eyewitness News interview with Umaru Sanda Amadu on Citi FM on Tuesday that the mechanism was not functioning effectively, therefore, the commission requested 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 further added “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.”
Explore the world of impactful news with CitiNewsroom on WhatsApp!
Click on the link to join the Citi Newsroom channel for curated, meaningful stories tailored just for YOU: https://whatsapp.com/channel/0029VaCYzPRAYlUPudDDe53x
