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12.07.2019 Business & Finance

PDS Gives ECG ¢200m To Service IPPs Debt

PDS Gives ECG ¢200m To Service IPPs Debt
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The Electricity Company of Ghana (ECG) has confirmed receipt of Gh¢200 million from the Power Distribution Service (PDS) Limited to be used to defray part of the debt ECG owes Independent Power Producers (IPPs) in the country.

The payment comes after the Chamber of Independent Power Producers, Distributors and Bulk Consumers (CIPDIB) issued a seven-day ultimatum to the Ministry of Finance over $600 million owed it.

The General Manager for Public Relation and Communications at the ECG, Dan Adjei Larbi explained to Citi News that the payment was to a response to the concerns of the IPPs.

“This is not coming because of the purported threat that they [the IPPs] issued and if it was because of the threat, they would have released all the amount.”

The payment was in line with an existing agreement, he added.

“Whatever money PDS collects, there is a portion for the power producers and because ECG has the power purchase agreements the money will be transferred to ECG and then subsequently, ECG pays the power producers,” Mr. Larbi said.

Meanwhile, the Chamber of Independent Power Producers, Distributors and Bulk Consumers have confirmed knowledge of the release of funds to ECG, but say they are yet to receive any payments from ECG.

One July 8, 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.

The IPPs in question were Sunon-Asogli Power (Ghana) Limited, BXC Solar Ghana, Cenit Energy Limited, Cenpower Generation Company Limited and Karpowership Ghana Company Limited.

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