Accra, Ghana – Ghana’s Minister for Energy and Green Transition, John Abdulai Jinapor, has announced that the Electricity Company of Ghana (ECG) has fully complied with critical financial directives designed to enhance transparency, efficiency, and consistent cash flow within the country’s power sector.
Speaking at the Government Accountability Series on Wednesday, July 16, the Minister revealed that in February 2025, he instructed ECG to fully implement the Cash Waterfall Mechanism (CWM) — a framework aimed at ensuring the equitable distribution of revenue across all entities within the electricity supply chain.
“To bring about efficiency and compliance, in February 2025, I directed that ECG fully comply with the Cash Waterfall Mechanism,” Jinapor said. “I also directed that they operate a single holding account, and that account should be opened with Ghana Commercial Bank, a state-owned bank.”
According to the Minister, ECG’s adherence to these directives has already produced tangible results, leading to timely payments to independent power producers (IPPs), fuel suppliers, GRIDCo, and the Volta River Authority (VRA).
“This is ensuring that so far, there is constant flow of cash to electricity generators, fuel suppliers, GRIDCo, VRA, and all power sector players,” he noted.
Jinapor emphasized that the improved cash flow has directly contributed to the recent stability in electricity supply across the country, highlighting the CWM’s effectiveness in de-risking the sector and assuring minimum payment guarantees to stakeholders.
“The mechanism puts in place a minimum guarantee when it comes to payments to the IPPs. This has also contributed largely to the stable power that we currently experience,” he added.
The announcement is seen as part of broader reforms under the government’s commitment to strengthen fiscal discipline and promote sustainable growth in Ghana’s energy landscape.
Source:Mybrytfmonline.com/Gumedzo Isaac Acheampong
