The Electricity Company of Ghana (ECG) has reiterated its commitment to strict adherence to the Cash Waterfall Mechanism as part of efforts to ensure a stable and uninterrupted electricity supply nationwide.
Mr Kwame Kpekpena, Acting Managing Director of ECG, described the Cash Waterfall Mechanism as a transparent and equitable revenue distribution system designed to improve payment flows within the power sector.
He made the remarks during a working visit to inspect the Aksa Energy power plant currently under construction at Anwomaso in the Oforikrom Municipality of the Ashanti Region.
The visit was undertaken with Dr William Amuna, Board Chairman of ECG, alongside members of the company’s Ashanti Regional management team.
Mr Kpekpena explained that the effective implementation of the Cash Waterfall Mechanism ensured that all revenues collected by ECG were distributed proportionately among key sector players, including Independent Power Producers (IPPs) and state-owned utilities.
According to him, the mechanism was also critical in reducing payment shortfalls and the accumulation of sector debt, outcomes that would ultimately translate into a more reliable and consistent electricity supply for consumers.
“Currently, our revenue collection has improved and economic indicators are much better, which has enabled us to meet our obligations and pay all IPPs,” Mr Kpekpena noted.
He stressed that stable electricity supply played a vital role in boosting national economic performance, adding that reliable power improved productivity and enhanced the overall well-being of citizens.
Mr Kpekpena further expressed satisfaction with the progress of the Aksa Energy plant, saying its completion would significantly improve power availability in the Ashanti Region and surrounding areas.
“Kumasi is one of Ghana’s largest cities, and the Ashanti Region holds enormous development potential. Establishing a generation hub in Kumasi, within the middle belt, is therefore a strategic and forward-looking decision,” he said.
Mr Murat Captug, Country Manager of Aksa Energy, disclosed that the first phase of the project had been completed, with 123 megawatts (MW) of the plant’s total 205MW capacity already operational.
He gave assurance that the second phase of the project would be completed by the end of April this year, allowing the plant to operate at full capacity.
Dr Amuna commended ECG’s management for enforcing fiscal discipline to strengthen operational efficiency across the company.
He also revealed that ECG was rolling out innovative measures to curb illegal power connections, noting that the initiative would help boost revenue mobilisation, reduce system losses and sustain the power supply chain.
