Power Distribution Service (PDS) Limited have released some GHc200 million to the Electricity Company of Ghana (ECG) to defray part of the debt ECG owes Independent Power Producers (IPPs) in the country.
The Chamber of Independent Power Producers, Distributors and Bulk Consumers (CIPDIB) recently threatened that $700m debt owed its members is not paid in eight days.
Dan Adjei Larbi who is the General Manager for Public Relation and Communications at the ECG explained that the payment was to respond to the concerns of the IPPs and not their threat.
“This is not coming because of the purported threat that they [the IPPs] issued and if it was because of the threat, they would have released all the amount,†he told Citi News.
The payment was in line with an existing agreement, he added.
“Whatever money PDS collects, there is a portion for the power producers and because ECG has the power purchase agreements the money will be transferred to ECG and then subsequently, ECG pays the power producers.â€
The Chamber of Independent Power Producers, Distributors and Bulk Consumers have indicated that they are aware of some released funds to ECG, but say they are yet to receive any payments from them.
On July 8, 2019, the IPPs, which currently supply about 1,500 megawatts of electricity threatened to shut down their plants if PDS fails to settle debts amounting to over $700 million within eight working days.
The IPPs in question were Sunon-Asogli Power (Ghana) Limited, BXC Solar Ghana, Cenit Energy Limited, Cenpower Generation Company Limited and Karpowership Ghana Company Limited.
John Peter Amewu who is the Energy Minister had been directed by the government to engage the IPPs threatening to shut down their plants over debts owed them.
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