[ad_1]
General News of Monday, July 8, 2019
Source: citinewsroom.com
2019-07-08
Mr. John Peter Amewu, Minister of Energy
Six independent electricity producers, currently supplying approximately 1,500 megawatts of electricity, have threatened to shut down their plants if Power Distribution Services (PDS) Limited fails to settle debts of a higher amount. $ 700 million within eight business days.
While acknowledging the negative impact of power plant closures, they said they have no other choice because they can not continue to be clogged with huge debts.
According to them, by the time the PDS took control of the Ghana Electricity Company (ECG), they owed them more than 400 million dollars.
They said that since PDS took power, it has not paid them money, which has led to a new debt of more than $ 300 million, bringing the total debt to more than $ 700 million. of dollars.
The companies – Sunon-Asogli Power (Ghana) Limited, BXC Solar Ghana, Cenit Energy Limited, Cenpower Generation Company Limited and Karpowership Ghana Company Limited – are members of the Chamber of Independent Power Producers and Bulk Consumers (CIPDIB).
Elikplim Kwabla Apetorgbor, President and CEO of CIPDIB, urged the government, through the Ministry of Energy, to compel the PDS to clear the accumulated bills submitted by the PPIs within a timeframe. eight working days.
He also wants PDS to pay interest on all late invoices that the independent suppliers could have used wisely.
He has tasked 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 makes the most of the benefits. of the concession agreement.
"If PDS does not comply with the terms of the APP and makes no payment to the IPPs within seven to eight business days; our members would have no choice but to shut down the PDS factories because they could not continue to be burdened with heavy debts, "he warned.
Mr. Apetorgbor stated that after a successful concession, the PPIs expected PDS to respect and comply with the terms of the legacy Electricity Purchase Agreements (IPPs), including by avoiding the delay in the payment of electricity purchases, as regards the negotiated credit days.
He lamented that PDS seems to be reliving some of the very bad contractual and commercial practices that characterized ECG activities.
He explained that energy can not be stored or destroyed, which badumes that consumers pay for the energy consumed while the PDS accumulates revenues.
"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 complained.
Mr. Apetorgbor lamented the huge financial indebtedness of the PDS vis-à-vis PPIs, which implies that PPIs have huge debts to their creditors and suppliers and also have trouble paying employees' salaries.
For the moment, he said most of the PPIs were stressed and found it extremely difficult to manage their operations and management costs, as some depend on overdrafts to pay salaries and others.
"For the sake of the country and its people, some electricity providers have taken a step forward by incurring additional financial costs by borrowing to obtain fuel to ensure a reliable power supply.
"Limited by these existential threats, the Chamber of Independent Electricity Producers (CIPDIB) warns the consumer public of impending power outages if the PDS fails to meet its financial obligations to PPIs within a set period of time. seven days, "he added. .
Source link
