Government has suspended its agreement with the Power Distribution Services with immediate effect, reinstating the Electricity Company of Ghana (ECG) as the power distributor, the Information Ministry has announced.
According to a press release, the decision follows the detection of fundamental and material breaches of PDS’ obligation in the provision of Payment Securities (Demand Guarantees) for the transaction which has been discovered upon further due diligence.
“The Demand Guarantees were key prerequisites for the lease of assets on 1st March, 2019 to secure the assets that were transferred to the concessionaire. The government is conducting a full enquiry into the matter, and the outcome will inform the next course of action,” the statement said.
According to the Ministry, the government has taken steps to ensure distribution, billing and payment services continue uninterrupted.
“The general public and customers are assured that this development will not interfere with the distribution of electricity services to customers,” the Ministry added.