The staff groups of the Ghana Grid Company (GRIDCo) have expressed concerns over the current cash flow situation of the company.

In a letter addressed to the Minister for Energy Matthew Opoku Prempeh, the Board Chairman, GRIDCo, and the Chief Executive, GRIDCO, the staff groups indicated that the company’s current cash flow situation is taking a toll on its operations, which will subsequently affect delivery of service.

“The financial landscape appears to be tumultuous, and also causing considerable distress on GRIDCO’s operations and if solution is not immediately found, the service delivery may be affected,” the staff groups stated in the letter.

The staff groups attributed the cause of the poor cash flow situation to the “cash waterfall mechanism” which they explained is used as the mode of payment to the industry players within the sector, which is not “working and suspected to have been discontinued.”

They noted that GRIDCo bills power distributing company Electricity Company of Ghana (ECG), its major customer over GHS100 Million per month, out of which only 18 per cent to 25 per cent is paid erratically.  

 “The chunk sits in our books without any plans to redeem same,” the groups further noted, stressing that the situation has made it difficult to pay suppliers, procure the requisite tools, materials and spares, all of which adversely affects business.”

The staff groups, therefore, cautioned that if the “Cash Waterfall Mechanism is not restored immediately or other means of financial support provided for GRIDCo” they cannot guarantee “smooth power supply, especially during this festive season and going forward”.