The Public Utilities Regulatory Commission (PURC) has ordered the Electricity Company of Ghana (ECG) to comply with the Cash Waterfall Mechanism (CWM) and pay all tariff revenues as prescribed and allocated under the CWM to secure the financial integrity of the energy sector.
According to the PURC, the objective of the CWM is to ensure fair and equitable allocation of revenues accruing from electricity tariffs it has approved as well as ensure that ECG distributes the tariff revenues it collects among all sector players along the electricity value chain.
This is contained in an 8-page directive dated March 18 issued by the PURC.
The order has become necessary because while the ECG has cited overloaded transformers as cause of the prevailing erratic electricity supply situation, other stakeholders such as the African Centre for Energy Policy (ACEPA) and the Minority in Parliament have blamed the situation on debt owed Independent Power Producers (IPPs).
To address the situation, the Commission further ordered the ECG to submit the following to its offices.
a. Copies of all Government directives to ECG for the purchase of fuel for power generation from August 2023 to date;
b. The total amount of fuel ECG procured for power generation from August 2023 to date, together with fuel supply contracts, invoices, details of fuel quantities, cost, dates and volumes delivered and all pertinent details;
c. Details of all bank accounts and investment accounts currently operated by ECG;
d. Monthly bank and investment statements corresponding to each account showing balances for the period August 2023 to date.
In respect of the purported overloaded transformers which the ECG cites for the prevailing erratic power supply, the PURC ordered the submission of the following:
- Ratings and current loadings of the overloaded distribution transformers;
- GPS location of all overloaded distribution transformers;
- Ratings of the new transformers to be installed in each location;
- Timelines and duration for injection of transformers for each location;
- Load management timetable corresponding with the timelines and duration foreach transformer injection
- Evidence of publication of 2.3e above to consumers.
The PURC explained that the order is in exercise of its functions as provided for under Sections 3 and 24(3) of the Public Utilities Regulatory Commission Act, 1997 (Act 538). which includes, “to protect the interest of consumers and providers of utility services; to promote fair competition among public utilities.”
Please read the Order to ECG here.