Electricity producers threaten to close their doors on unpaid bills

Company News of Monday, July 8, 2019

Source: thebftonline.com

2019-07-08

The country's independent power producers have sent a seven-day ultimatum to the government, through the Ministry of Finance, to urge energy distribution services (PDS) to explicitly release funds to pay all debts in suffering – estimated at US $ 300 million in June 2019 – or closed their factories.

"We are warning that if PDS does not comply with the terms of the APP and makes a payment to the PPIs within 7 days, our members will have no choice but to close their plants because they do not can not continue to face enormous problems. debts.

"This action, even if it has huge consequences for employment, can not be avoided," says a statement from the Chamber of Independent Producers, Distributors and Wholesale Electricity Consumers (CIPDIB) signed by its Director General, Elikplim Kwabla Apetorgbor, on behalf of the PPIs. .

The board argued that since the energy is neither stored nor destroyed, consumers pay for the energy produced while the PDS is still accumulating revenue.

So he found "very frustrating" that society [PDS] did not issue any payment to the IPPs four months after the resumption of ECG 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, "the statement said.

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.

He also urged all stakeholders in the electricity sector to ensure the transparency of their transactions, as they are essential to the growth and sustainability of the sector.