The Electricity Company of Ghana (ECG) has started operations in full swing after taking over management from troubled Power Distribution Services (PDS) this week.
Following government’s termination of the PDS concession agreement, ECG immediately assumed full control of electricity distribution business in the southern part of Ghana which was hitherto being handled by PDS.
Services such as metering, billing, distribution of bills and revenue collection were being undertaken by PDS but will now be done by ECG as was the case before the PDS concession agreement came into force.
The Public Relations Officer of ECG, Daniel Adjei Larbi in an interview with host Kweku Owusu Adjei on Anopa Kasapa on Kasapa 102.5 FM announced to the public to revert all cheques in the name of ECG and not PDS following the take over.
“Nothing has changed in the switch. Operations will go the same way, but the only thing customers should take note of is that now all cheques should be issued in the name of ECG instead of PDS,” Daniel Adjei Larbi indicated.
He promised efficiency and quality service following the take over of assets and management of the state power distributor as result of the termination of the concession agreement.
The government of Ghana has canceled its concession agreement with the private investor for the management of ECG despite opposition by the American government.
The Ghana government argues PDS failed to satisfy some key condition precedents under the contract.
Consequently, the US government has withdrawn the second tranche of $190million earmarked for improvement in Ghana’s energy sector under the millennium challenge compact.
Background
On March 1, 2019, Ghana Power Distribution Services, Ltd. (PDS) assumed operation and management of the staff and assets of the Electricity Company of Ghana (ECG) under a 20-year concession agreement.
According to the Millennium Challenge Compact, Private sector participation is a central reform under MCC’s Ghana Power Compact. This was critical to the long-term sustainability of related infrastructure investments and the financial recovery of the energy sector in Ghana.
The Compact comprised two tranches of funding: $308 million available upon the official start of the current Compact, and a second tranche of $190 million, which was available upon a successfully executed concession agreement, which the United States maintains occurred on March 1, 2019.
