The Chamber of Impartial Ability Producers and Bulk Consumers (CIPDIB) has predicted that attainable electric power outages throughout the region in the next number of times.
They say lights are possible to go off within just a person 7 days if Electrical power Distribution Solutions (PDS) fails to shell out large money owed owed the Independent Electrical power Producers (IPPs).
A statement issued and signed by the Chief Government Officer of CIPDIB, Mr Elikplim Kwabla Apetorgbor, urged the authorities by the Ministry of Strength to compel PDS to expressly pay back all gathered invoices to the IPPs within just the seven days.
The assertion more urged the governing administration to not only make PDS spend its debts to the IPPs, but also be created to spend desire on all overdue invoices which the IPPs could have profitably utilized.
It also known as on the Millennium Growth Authority (MiDA) to compel PDS to adhere to best business enterprise tactics and respect the phrases of the PPAs and make sure the country derive the the best possible gain from the concession arrangement.
The leadership of CIPDIB emphatically stated that “should PDS fail to regard the conditions of the PPA and make payment to the IPPs within just the 7-8 functioning times time period our users would be remaining with no choice than to shut down PDS’s plants as they could not continue on to be saddled with large debts”.
PDS took above some operations and administration of Electricity Business of Ghana (ECG) from March 1, 2019, with the expectation to produce a additional high quality company to electricity buyers than its host, ECG.
Beneath is the comprehensive Assertion
CHAMBER OF Independent Electricity PRODUCERS, DISTRIBUTORS AND BULK People, GHANA (CIPDIB)
Hazard! Electricity CRISES LOOM More than Expanding Electrical power SECTOR Credit card debt!
1. It would be recalled that the functions of the Energy Organization of Ghana (ECG] arrived less than a barrage of criticisms mainly because of perceived inefficiencies which provided but not restricted to the huge indebtedness to electricity generators especially the Unbiased Power Producers [IPPs].
2. Versus this backdrop and the need to revamp the ECG, there were being initiatives by successive governments to strengthen the management of this all-crucial institution to generate the industrialization agenda of the state.
3. This effort and hard work finally culminated in the takeover of some functions and management of ECG from March 1, 2019, by the Power Distributions Services [PDS].
4. Staying a private sector led, the PDS, was expected to deliver extra quality company than its host- ECG.
5. This implies that different stakeholders in the power sector have high-efficiency expectations from PDS. The individuals, for instance, count on a responsible, cost-effective and sustainable ability offer.
6. For IPPs, the expectation was that the PDS will honour and abide by the conditions of the Energy Order Agreements (PPAs) inherited particularly by staying away from the hold off in shelling out for ability buys with respect to the bargained credit times.
7. Regrettably, however, the PDS appears to be reliving some of the incredibly lousy contractual and poor organization procedures that characterised its host -ECG.
8. Electricity can neither be saved nor destroyed. This presupposes that consumers are paying out for the electricity consumed and PDS is accumulating the revenues. It is really frustrating to be aware that PDS, for the past 4 (4) months, considering that having about from March 1, 2019, to day, has not remit any payment to the IPPs nevertheless!
9. In the midst of this challenge, a person would have anticipated PDS to have interaction the players in a bid to advise them of any worries, if there is, but efforts so significantly designed to lead to PDS to honour its contractual bargains has yielded practically no outcome.
10. Meanwhile, the huge money indebtedness of PDS in the direction of the IPPs implies that the IPPs are saddled with massive money owed to their collectors and suppliers and also challenged in spending employees’ salaries.
11. At the instant, most of the IPPs are pressured up and acquiring it particularly hard to deal with their functions and administration expenses. Some have to depend on overdrafts to be capable to shell out salaries and others.
12. For really like of region and its people today, some IPPs experienced gone a action additional to incur an further economical expense in borrowing to procure gas to assure trusted electric power source.
13. Constrained by these existential threats, the Chamber of Unbiased Energy Producers and Bulk Buyers [CIPDIB], is by this launch alerting the consuming public of looming energy outages unless of course PDS fulfils its money obligations to the IPPs in just a 7-working day time period.
14. CIPDIB is urging the government via the Ministry of Electricity to bring about PDS to expressly release funds to pay out all accumulated invoices to the IPPs in just 7 times.
15. CIPDIB further desires to urge the govt to not only make PDS shell out its money owed to the IPPs but that PDS need to also be produced to shell out curiosity on all overdue invoices which the IPPs could have profitably used.
16. We connect with on MiDA to compel PDS to do things to guarantee very best company practices and respect the terms of the PPAs and be certain the nation derive the ideal benefit from the concession arrangement.
17. We caution that ought to PDS fail to respect the phrases of the PPA and make payment to the IPPs inside of the 7-day period our members will be left with no selection than to shut down their crops as they simply cannot carry on to be saddled with huge debts. This motion despite the fact that has huge implications for careers – are not able to be averted.
18. We reiterate the need to depoliticize the ability sector and discourage undue political interferences from the sector and make it possible for the sector to be operated as a pure business.
19. Finally, CIPDIB is urging all members in the electrical power sector to make certain transparency in our dealings as it is critical to the progress and sustainability of the sector.
Elikplim Kwabla Apetorgbor
Main Executive Officer, CIPDIB.