A report by the Public Interest Accountability Committee(PIAC) reveals a 36 percent shortfall in the Electricity Company of Ghana’s payments in accordance with the cash waterfall mechanism (CWM) for gas in 2023.
In the 2023 edition of the report, PIAC disclosed that ECG paid an approximate amount of GHS 250 million as against an expected payment of GHS 385 million.?
The report showed that the outstanding debts to be paid by ECG for gas used for the year 2023 were GHS 140 million.?
The Cash Waterfall Mechanism (CWM) and Natural Gas Clearinghouse (NGCH) set out the principles, methodology, and processes for determining and disbursing tariff revenue collected by the Electricity Company of Ghana (ECG) to various beneficiaries along the electricity value chain.
Accordingly, Ghana National Gas Company Limited (GNGLC),? Ghana National Petroleum Company (GNPC), and other stakeholders in the value chain are paid directly by CWM as a percentage of the invoice amount submitted for each month.
The report said that a
lthough allocations were made in the months of July and August, ECG did not make payments for those allocations.?
The report said PIAC observed that GNGLC’s indebtedness to GNPC continued to rise despite the use of the Cash Waterfall Mechanism to address the legacy debts.
The report noted that this trend, if not mitigated, could impair the operational viability of GNGLC.
Source: Ghana News Agency