Samuel Atta Akyea, a legislator for Abuakwa South constituency and Chairman of the Energy Committee
Samuel Atta Akyea, a legislator for Abuakwa South constituency and Chairman of the Energy Committee of Parliament, has said that the Electricity Company of Ghana (ECG) may collapse should the power company comply with the Cash Waterfall Mechanism (CWM) holistically.
The Cash Waterfall Mechanism is a government policy that dictates how ECG should manage 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.
“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, “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.”
The legislator, however, backed the decision of the Public Utilities Regulatory Commission (PURC) in ordering ECG to furnish a comprehensive report of its operations to the energy regulatory body.
“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.
EAN/BB
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