Employees of the Ghana Grid Company (GRIDCo) are issuing a stark warning of a potential return of ‘dumsor’ (intermittent power outages) this Christmas if the financial condition of the company is not promptly improved. The blame is placed on Ghana’s Electricity Company of Ghana (ECG), with GRIDCo workers asserting that the non-functioning Cash Waterfall Mechanism is causing severe financial distress, jeopardizing service delivery.

GRIDCo staff members, through a letter addressed to the Minister of Energy, the Board Chairman, and the Chief Executive of GRIDCo, express concerns about the Cash Waterfall Mechanism, suspecting its discontinuation. They accuse ECG, their major customer, of incomplete and irregular payments for services, with bills exceeding GH₵100 million monthly, of which only 18% to 25% is paid.

The ongoing financial challenges impact not only GRIDCo’s operations but also service delivery and staff welfare. The staff issues a caution, indicating that without the restoration of the Cash Waterfall Mechanism or alternative financial support, a smooth power supply, especially during the festive season, cannot be guaranteed.

Behind the Scenes:

Sources reveal that ECG owes significant amounts to various entities, including the Ghana National Petroleum Corporation (GNPC), Volta River Authority (VRA), Ghana Gas, and Independent Power Producers (IPPs). ECG’s debts, totaling over $170 million, affect the operations of state-owned entities, leading to power outages. VRA, faced with its own crisis, now sells power to Togo and Benin to sustain operations. If the situation persists, Ghana Gas may struggle to pay Tullow, potentially disrupting gas supply and causing power generation shortfalls, contributing to further outages.