VRA alarmed over IPPs’ demand for increased payments under Cash Waterfall Mechanism

The Volta River Authority (VRA) has raised concerns about the demands made by Independent Power Producers (IPPs) for an increase in their monthly payments under the Cash Waterfall Mechanism (CWM), from $45 million to $59 million.

According to the VRA, if the government approves this request, it would have significant financial repercussions not only for the VRA but also for GRIDCo and the Bui Power Authority.

The Public Utilities Regulatory Commission (PURC) has initiated a review of the Cash Waterfall Mechanism to address the challenges associated with payment allocations.

Speaking to JoyNews, the National Treasurer of the VRA Senior Staff Association, Jerry Nelson Nettey, said that there will be a potential negative impact on public power entities if these issues are not resolved. "The major challenge is the mismanagement of the Cash Water Mechanism within that sector.