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Business News Thu, 6 Jun 2019

ECG has not been sold or taken over - MD

The Managing Director of the Electricity Company of Ghana (ECG), Ing. Samuel Boakye-Appiah has hinted that ECG is still in existence and has neither been sold nor taken over by Power Distribution Services (PDS) Ghana Limited as proclaimed.

Addressing the media on ECG’s new role in Ghana’s power sector, Ing. Boakye-Appiah indicated that it is important for the general public and stakeholders to know of their existence following the transfer of their electricity distribution to PDS on March 1, 2019.

After the concession agreement between both parties, it was widely speculated that ECG has been sold and taken over by PDS but Ing. Boakye-Appiah has debunked the reports.

Giving details on the concession agreement between both parties, the MD said ECG just handed over the management and operations of its distribution business to PDS whilst ECG is the asset owner.

According to the MD, ECG only leased its assets to PDS and is a going concern with a new business focus although not directly involved in the distribution of power to individual customers.

Explaining details of their current operations, Ing. Boakye-Appiah said ECG is now into Asset Management, Bulk Energy Trading as well as Telco and Consulting Services.

Highlighting the roles of each company, Ing. Boakye –Appiah said PDS is now responsible for electrical network operations including regular maintenance, fault repairs, commercial billing, revenue collection, new services connections as well as investments, rehabilitation, expansion and network extensions whilst ECG will continue to operate as a bulk energy supplier to PDS and trader energy exporter to West African Sub-Regional Market after satisfying the domestic market, responsible asset owner and a provider of training and consultancy services in the energy sector.

According to him, ECG’s assets include buildings, power lines, sub-stations, and all that enable the business of power distribution to run stating that PDS Limited now has to buy bulk power from ECG for further distribution to residences and businesses.

“Ghana’s energy sector has witnessed a major change in power distribution with the introduction of power distribution services (PDS) Ghana Limited under a concession agreement which officially took effect on March 1 2019. The Electricity Company of Ghana Limited which was until then the power distributor in Ghana has not been sold or taken over. The company is still a going concern and is operating as a responsible asset owner, bulk energy trader, monitoring the concessionaire and providing training and skills development for the energy sector in Ghana and beyond,” ECG’s Managing Director said.

He further added that “As at 1st March 2019, ECG had completed a historic journey to usher in the new electricity distributor –PDS and handed over its distribution business to PDS under the concessionaire agreement. Under this agreement, ECG has leased its assets to a private company PDS, ECG has therefore not been sold. Now ECGs mandates include bulk energy purchase and trade, network and assets ownership, performance monitoring of PDS and consultancy services whilst PDS mandate is asset management, service provision and electricity sales”.



Moreover, the Managing Director of ECG revealed that no staff of the company lost his/her job after the concession agreement where some staff were transferred from ECG to PDS.

“In accordance with government’s directive, 6,400 staff of ECG were transferred to PDS on the same conditions of service as they were enjoying with parent company ECG. Similarly, the 112 staff who remain with ECG are also enjoying their existing conditions of service therefore no staff has lost his or her job.”

Reiterating his stance on the existence of ECG in the country, the MD said “We also wish to emphasise that neither ECGs assets nor its liabilities were transferred to PDS, ECG has retained all the network assets and is also liable to debts incurred prior to the transfer of its operations to PDS. We must emphasise that ECG has not being sold, ECG has not changed to PDS, ECG is ECG and PDS is PDS. They are two different entities playing different roles in the power sector. ECG will sell bulk energy to PDS, PDS will in turn pay for the energy consumed and make these payments to ECG for using ECG’s networks. PDS is the distributor who will handle and manage on behalf of ECG all legacy or outstanding issues regarding revenue collection etc”.

Source: www.ghanaweb.com
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