PDS-ECG brouhaha: CIPDiB urges broader consultations, demands payment of US$1.5bn govt debt

PDS-ECG brouhaha: CIPDiB urges broader consultations, demands payment of US$1.5bn govt debt

The Chamber of Independent Power Producers, Distributors and Bulk Consumers (CIPDiB), as a key stakeholder in the sector, is willing to engage government in the fresh attempt at securing private investment in the electricity distribution sub-sector in Ghana, and the interface with the generation sub-sector.

In a statement copied to the B&FT, the Chamber indicated its readiness to share its expertise and experience with energy sector stakeholders to strengthen the power sector to serve the needs of Ghanaians.

“Our experience in bringing in billions of dollars of private sector investment into power generation in Ghana makes us confident that this can also be done in the distribution subsector. With credible, transparent and fair processes, the right caliber of investors can be attracted,” read the statement signed by its CEO, Elikplim Kwabla Apetorgbor.

The chamber is also asking government to pay a cumulative outstanding debt USD$1.5 billion to IPPs in the sector to ensure reliable, affordable and accessible energy supply.

“The CIPDiB is once again compelled to ask that payment of the obligations of GoG/ECG be made as a matter of urgency. Immediate disbursement from funds that have been built up in PDS accounts is essential to enable us to continue to produce power”.

The energy sector is clearly under a serious threat and we would urge the Government of Ghana and its agencies, including ECG and MiDA, as well as the MCC to co-operate to ensure that decisions are taken to enable Ghanaians to have access, affordably, to a reliable energy supply,” the statement read.

Contrary to expectations that the take-over of the operations of the Electricity Company of Ghana (ECG) by Power Distribution Services (PDS) would offer some relief to the IPPs in terms of prompt payment for power supply, the chamber said in its statement that the receivable account position of IPPs had rather deteriorated in the aftermath of the arrangement.

It said: “For us, members of the Chamber of Independent Power Producers (IPP’s), who provide over 2500MW reliable power generation capacity—representing over 60 per cent of the total generation in the power sector of Ghana—there are assurances that with private sector participation in ECG, delays in being paid for the power we generate would be a thing of the past.”



Source: thebftonline.com

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