Closed factories may not arrive; PDS speaks progressive – IPPs

General News of Wednesday, July 10, 2019

Source: starrfm.com.gh

2019-07-10

The Chamber of Independent Power Producers has hinted that the publication of the planned shutdown of the power stations feeding the PDS electricity distributor might not occur.

According to the CEO of the Elikplim Kwabla Apetorgbor Chamber, there would have been progressive discussions between them and the energy distributor.

"The deadline expires next week on Wednesday. However, the signs are positive: we should know the result at the end of the day. It seems possible that the closure will not happen before the end of the day, "he told Morning Starr host Francis Abban.

PPIs expressed frustration that PDS did not remit payment four months after ECG resumed operations.

"At the moment, most PPIs are stressed and have a hard time managing their operating and management costs. Some have to depend on overdrafts to pay salaries and others, "they said in a statement.

He further stated: "We alert the consumer consumer of impending power outages, unless PDS is meeting its financial obligations to the IPPs within seven days."

Ghana Electricity Company (ECG)

the operations were the subject of much criticism because of perceived inefficiency, which included, but was not limited to the huge debt to power producers – especially Independent Power Producers [IPPs].

Efforts by successive governments to improve the management of this very important institution charged with carrying out the country's industrialization program have led to the privatization of the company, with a possible takeover by PDS in February of this year.

According to the Chamber, the expectation of PPIs that PDS would respect and abide by the terms of inherited Electricity Purchase Agreements (PPAs) – notably by avoiding delays in the payment of purchases of electricity. Electricity respecting the negotiated credit days – was not satisfied, four months after the takeover.

"PPIs have huge debts to their creditors and suppliers and also have to pay the salaries of employees," the statement said.

CIPDIB also called for depoliticization of the electricity sector to discourage undue political interference in the sector, so that the energy sector can be operated as a pure enterprise.