Now review the electricity contracts – CAPE's Debt Reduction Board

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The Executive Director of the African Center for Energy Policies (ACEP), Benjamin Boakye, advised the government to streamline the electricity sector by eliminating some of the excess power generated by the Independent Power Producers (IPP).

According to Boakye, this goal can only be achieved when the government boldly cancels certain contracts and pays the corresponding penalties.

"We have to sit down as a country and solve this energy situation because it will be recurrent," he said. PM Express, a news program on MultiTV, Wednesday.

The Chamber of Independent Power Producers and Consumers (CIPDIB) has alluded to possible power outages across the country over the next few days because of accumulated debts.

Elikplim Kwabla Apetorgbor, Chief Executive Officer of CIPDIB, urged the government, through the Ministry of Energy, to force Power Distribution Services (PDS) to expressly pay all the bills accumulated to the IPPs within seven days.

The PDS said the PPIs should sue the Ghana electricity company for its money.

PDS said it does not have a contract with independent power producers.

They are not required to respond to correspondents or to pay them.

However, Mr Boakye said that it was time for the government to bite the bullet.

"Some entrepreneurs have to leave because, if you pay $ 200 million today, you better wait to pay $ 500 million or $ 1 billion in two or three years. These are the decisions we need to take otherwise we will not go [clear the debts], Said Mr. Boakye.

Dealer

Manila Electric Company (Meralco) officially took over the operation of the ECG as of March 1 this year, under a ten-year concession agreement. years.

Negotiated Transaction Agreements – namely the Lease and Assignment Agreement, the Bulk Supply Agreement and the Government Support Agreement – to secure the proposed Private Sector Participation (PSP) at the ECG were approved by the Cabinet and ratified by Parliament.

Under the terms of the agreement, the dealer should inject $ 580 million into the distribution system during the first five years of the agreement's validity period.

The Bulk Supply Agreement between ECG and the Dealer addresses the Consignor's subsequent purchase of the capacity and energy made available to ECG under the Power Purchase Agreements (PPAs) .