Public Utilities Regulatory Commission (PURC) has confirmed in its latest validation report, the that the Electricity Company of Ghana (ECG) has fully complied with the Cash Waterfall Mechanism (CWM) for March 2024 payments.

This compliance comes after significant scrutiny and criticism from both the media and the PURC regarding ECG's previous failures to adhere to the CWM since its revision in August 2023.

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

Out 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 significant 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 payments to Independent Power Producers (IPPs) and statutory obligations, was allocated to 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 revised Cash Waterfall Mechanism (CWM) was implemented, ECG fully compensated all Level B beneficiaries in March 2024.

This is a significant improvement from its previous record of incomplete payments to these entities.

However, the Ministry of Finance, which is responsible for covering any shortfalls, has not met this obligation since August 2023.

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

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