ECG terminates PDS contract

The concession agreement with Power Distribution Services and Electricity Company of Ghana (ECG) has been terminated effective today, Wednesday, October 23.

A statement by the ECG stated that the company “has therefore assumed full operational and financial control of the electricity distribution business in the Southern Zone of Ghana with immediate effect.”

The statement further directed all customers and stakeholders to directly engage ECG in their normal business activities which include but are not limited to the following:

• Metering
• Billing
• Distribution of bills
• Bill reconciliation
• Revenue collection
• New Service connections
• Disconnections and reconnections
• Faulty meter replacements
• Network faults and repairs
• Network Operations, Maintenance, Expansion and Rehabilitation.
• Complaints and fault reporting to the call centres
• Any other related services

In this regard, all payments in respect of power purchases and other related activities should take place at:

• ECG Regional and District Offices
• ECG existing Customer Service Centres
• ECG licensed vending stations
• ECG operated Cash Points
• ECG authorized Banks

The statement added that “all cheques issued in respect of power purchases and other related activities should be in the sole name of Electricity Company of Ghana Limited…all assets currently in the name of PDS revert to ECG with immediate effect and will be rebranded in accordance with the decision over the next few weeks.

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. Private sector participation is a central reform under MCC’s Ghana Power Compact. This is 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.