The Chairman of the Mines and Energy Committee and MP for Abuakwa South constituency, Hon. Samuel Atta Akyea, speaking on JoyNews’ Newsfile said that the Electricity Company of Ghana (ECG) may collapse should it adhere to the Cash Waterfall Mechanism (CWM) holistically.
The Cash Waterfall Mechanism is a government policy that specifies how ECG should handle its financial affairs. According to the legislator, despite the efforts of ECG to maximize revenue, the company has in recent times recorded a revenue shortfall, hence if the CWM is pushed to prioritise other energy companies, leaving the minimal resources for ECG to function, it may have dire consequences on ECG and impede its ability to operate efficiently.
Hon. Atta Akyea, however, backed the decision of the Public Utilities Regulatory Commission (PURC) to order ECG to provide a comprehensive report of its operations to the energy regulatory body.
Mr. Akyea urged the PURC to be cautious in handling mechanical issues to prevent the collapse of ECG. He also urged the Electricity Company of Ghana to release a schedule for power outages, as there is no prior notice from ECG, enabling people to anticipate and adjust to unstable electricity.
Source: Energy Ghana