The Minister of Energy and Green Transition, John Jinapor, has announced that the Electricity Company of Ghana (ECG) has complied with directives aimed at ensuring transparency, efficiency, and regular cash flow within Ghana’s power sector.
Speaking at the government accountability series on Wednesday, July 16, the Minister revealed that in February 2025, he instructed ECG to adhere strictly to the Cash Waterfall Mechanism (CWM), a financial framework designed to ensure equitable and timely distribution of revenue across all players in the power value chain.
To bring about efficiency and compliance, in February 2025, I directed that ECG fully comply with the Cash Waterfall Mechanism. I also directed that they operate a single holding account, and that account should be opened with Ghana Commercial Bank, a state-owned bank,” Jinapor stated.
According to the Minister, ECG has since met all the conditions, which has significantly improved the flow of funds to key institutions including 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.
The compliance, Jinapor added, has played a critical role in the relative stability of electricity supply across the country in recent months.
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 said.
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