New Ghana power distributor refers debt owed to IPPs to ECG

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IN Ghana, the director of communications at Power Distribution Service (PDS), William Boateng, has provided some clarity on the matter involving the company’s engagement with Independent Power Producers (IPPs).

According to the Ghanaian Times newspaper, Boateng said PDS which took over the role of power distribution in March this year, stated that it does not owe nor have any contracts with the IPPs.

‘The IPPs got it wrong. PDS does not have a contract with them or owes them. And as a result, we have no obligation to respond to their correspondence or make payments to them,’ he said.

Boateng said the power distributor has a contract with Electricity Company of Ghana (ECG), which it has not defaulted on.

‘We have honoured all our concessional obligations to ECG. ECG gives us bulk bills and we pay every week. I will advise the IPPs to seek audience with ECG, which might have an agreement with them,’ he stated.

Boateng was responding to the decision by the Chamber of Independent Power Producers and Bulk consumers (CIPDIB) to cut supply of power to PDS if the $700 million debt owed its members was not paid in eight days.

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