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The country runs the risk of plunging Ghanaians into the dark, with some independent power producers having threatened to withdraw their services in case of unpaid debt.
The PPIs, which number six, explained that being indebted for $ 700 million left them with no choice but to shut down plants that supplied 1,500 megawatts of electricity to the country.
According to power generators, the huge financial debt of Power Distribution Services (PDS) has resulted in huge debts to their creditors and their suppliers, also placing them in a very difficult situation where they are unable to pay the salaries of employees.
In this context, they cautioned that "If PDS does not comply with the terms of the APP and makes no payment to the PPIs within seven to eight business days; our members would have no choice but to shut down the PDS plants because they could not continue to be in debt with huge debts. "
Elikplim Kwabla Apetorgbor, President and CEO of the Chamber of Independent Power Producers and Mbad Consumers (CIPDIB), said that most independent producers are under stress and that it is extremely difficult to manage their operations. management costs, as some depend on overdrafts to pay salaries and others.
He added that "for the sake of the country and its people, some independent ISPs have gone even further by incurring additional financial costs by borrowing to obtain fuel to ensure a reliable power supply."
Mr. Apetorgbor pointed out that, "Limited by these existential threats, the Chamber of Independent Power Producers and Bulk Consumers (CIPDIB) alerts the consumer consumer of impending power outages, unless the PDS meets its financial obligations towards PPIs over the next seven years. day period. "
The $ 700 million debt had been accumulated before and after the takeover of the Electricity Company of Ghana (ECG) by Power Distribution Services (PDS). The company owed $ 400 million to independent suppliers before taking over from ECG and did not pay any money since the takeover, which resulted in additional debt of $ 300 million.
Meanwhile, the CEO of CIPDIB encouraged the government, through the Ministry of Energy, to oblige PDS to clear the accumulated bills submitted by the PPIs within eight working days, as well as interest on any late bills that the PPIs could have used wisely.
Mr. Apetorgbor also called on the Millennium Development Authority (MiDA) to compel PDS to adhere to best business practices, to abide by the terms of the power purchase agreements and to ensure that the country gets the best from party to the concession contract.
The PPIs expressed regret, saying that PDS seems to be reliving some of the very bad contractual and commercial practices that characterized ECG activities.
Following this, after a successful concession, PDS expected PDS to respect and comply with the terms of the legacy PPAs, including avoiding delays in the payment of electricity purchases, regarding the negotiated credit days.
"It is very frustrating that PDS has not paid any PPI payments for four months since March 1, 2019.
"In the midst of this case, we could have expected PDS to engage the players in order to inform them of any challenges, if any, but the efforts made to bring PDS up to now. to meet its contractual commitments have given virtually no results, "he lamented.
On the other hand, Power Distribution Services refuted claims that it had no financial indebtedness to independent power producers, stating that it had no contractual agreement with the PPIs.
In a statement issued by PDS on Monday, July 8, 2019, the company said that "PDS would like to point out that, under the dealership agreement, PDS has signed a wholesale supply contract with ECG to buy electricity to the latter. . PDS has no contractual relationship with the PPIs and has fulfilled its obligations under the Bulk Supply Agreement. "
PDS, however, acknowledged the concerns raised by the CIPDIB, stating that it was "ready to help ensure a pleasant working environment and increased efficiency within the electricity supply value chain".
Among the CIPDIB member companies, Sunon-Asogli Power (Ghana) Limited, BXC Solar Ghana, Cenit Energy Limited, Cenpower Generation Company Limited and Karpowership Ghana Company Limited are at risk of withdrawing their services from PDS.
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