A legislator representing the Abuakwa South constituency Samuel Atta Akyea, has expressed concerns that the Electricity Company of Ghana (ECG) could face collapse if it fully complies with the Cash Waterfall Mechanism (CWM).

The Cash Waterfall Mechanism is a government policy dictating how ECG manages its financial affairs. Atta Akyea highlighted that despite ECG's efforts to increase revenue, the company has experienced a recent shortfall in revenue.

Therefore, if the CWM prioritizes other energy companies over ECG, it could severely impact ECG's operations and hinder its efficiency.

Speaking on JoyNews' Newsfile on Saturday, March 30, Atta Akyea warned, “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 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.”

Despite these concerns, Atta Akyea supported the Public Utilities Regulatory Commission's (PURC) decision to require ECG to provide a comprehensive report of its operations to the energy regulatory body.

“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 JoyNews’ Newsfile on Saturday, March 30.

He added, “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,” he said.