The Electricity Company of Ghana (ECG) has fully complied with the Cash Waterfall Mechanism (CWM) for its March 2024 payments, according to the Public Utilities Regulatory Commission (PURC).

This marks a significant turnaround after months of scrutiny and criticism from both the media and the PURC for failing to meet the CWM requirements since its revision in August 2023.

The latest PURC validation report reveals that ECG generated over GH¢1 billion in March 2024, used to settle invoices from January 2024.

Of this revenue, GH¢620 million ($52 million) was allocated to seven Independent Power Producers (IPPs) and the West African Gas Pipeline Company (WAPCo), accounting for 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 GH¢1,002,850,000," the report detailed.

After payments to the IPPs and statutory obligations, the remaining GH¢334.8 million was distributed among Level B beneficiaries, including state-owned enterprises like the Volta River Authority (VRA), Bui Power Authority, Ghana National Gas Company, regulators, some power generators, and ECG itself.

Notably, this is the first time since the revised CWM's implementation that ECG has fully compensated all Level B beneficiaries, a significant improvement from its previous incomplete payments.

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

For March 2024, the shortfall stands at GH¢159.9 million.

The PURC is currently in discussions with the Ministry to ensure these financial obligations are met.

"The Commission wishes to state that the Ministry of Finance has not made up for the shortfalls since August 2023," the PURC emphasized.