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08.07.2019 Headlines

We’re not indebted to Power Producers – PDS

By CitiNewsRoom
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Power Distribution Services (PDS) company has refuted assertions it owes some six Independent Power Producers (IPPs) huge sums of monies.

The IPPs, which currently supply about 1,500 megawatts of electricity threatened to shut down their plants if PDS fails to settle debts amounting to over $700 million within eight working days.

But in a statement, PDS, which took over power distribution from the Electricity Company of Ghana, said it had no contractual agreement with the IPPs.

“PDS wishes to put on record that under the concession arrangement, PDS has signed a Bulk Supply Agreement with ECG to purchase power from the latter. PDS has no contractual relationship with the IPPs and has met its obligations under the Bulk Supply agreement.”

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As at the time ECG was taken over by PDS, the IPP say they were owed over $400 million.

They said ever since PDS took over, it has not received any payments resulting in accumulation of another debt of over $300 million, bringing the total debt to over $700 million.

The IPPs; Sunon-Asogli Power (Ghana) Limited, BXC Solar Ghana, Cenit Energy Limited, Cenpower Generation Company Limited and Karpowership Ghana Company Limited – are members of the Chamber of Independent Power Producers and Bulk Consumers (CIPDIB).

The Chief Executive Officer (CEO) of CIPDIB, Elikplim Kwabla Apetorgbor, in a statement, urged the government, through the Ministry of Energy, to compel PDS to clear the accumulated invoices presented by the IPPs within eight working days.

Energy Minister directed to meet IPPs over $700m debt

The Energy Minister, John Peter Amewu had been directed by government to engage the IPPs threatening to shut down their plants over debts owed them.

The Minister for Information, Kojo Oppong Nkrumah on the Citi Breakfast Show said government has asked Amewu to immediately meet with the managers of PDS and the IPPs to find a way around the issue.

“On Thursday night, this matter came to our attention while we were on Cabinet retreat to see how far we've come in the first half of this year on the very many deliverables before government and the Energy Ministry was instructed to quickly re-engage with PDS and the sector players to understand the nature of the constraint and to quickly move to resolve that complaint.”

The post We’re not indebted to Power Producers – PDS appeared first on Citi Newsroom .

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