The Electricity Company of Ghana (ECG) has confirmed receipt of GHS200 million from the Power Distribution Service (PDS) Limited. This amount is expected to be used to defray part of the debt owed independent power producers in the country.
This comes a week after the Chamber of Independent Power Producers, Distributors and Bulk Consumers (CIPDIB) issued a 7-day ultimatum to the Ministry of Finance, to influence PDS to release funds to pay all outstanding debts to the IPP’s which are in excess of 600 million dollars.
But in an interview with Citi Business News, the General Manager for Public Relation and Communications at the ECG, Dan Adjei Larbi said the monies paid were not in reaction to the threats by the Chamber of Independent Power Producers, Distributors, and Bulk Consumers.
“Indeed, ECG received GHS200 million from PDS to pay the power producers. This is not coming because of the threat that the IPPs issued.
This has been the arrangement that whatever monies that PDS will collect, there is a portion for the power producers and because ECG has a power purchase agreement with the power producers the money will be transferred to ECG and then subsequently ECG pays to the power producers. So I don’t think the money was released out of the threat that was issued,” he added.