ECG owes us $900m as of quarter 1, 2022 - Chamber of IPPs

Monday 4th of July 2022

ECG owes us $900m as of quarter 1, 2022 - Chamber of IPPs

Power Company of Ghana (ECG)
As of the finish of the primary quarter of this current year, the Electricity Company of Ghana (ECG) Limited owed the Independent Power Producers $900 million in power supply solicitations.
As per the Chief Executive of the Chamber of IPPs, Distributors and Bulk Consumers, Elipklim Apetorgbor, ECG has no ethical right to increment power bill cosmically.
Talking at the Public Hearing of the Multi-Year Major Tariff Review, he said "you are intensely obligated and have not paid your generators. As toward the finish of the principal quarter of 2022, you owed us nearly $900 million in power supply solicitations just, barring other real cases. It is smarter to keep putting forth the attempt to recover those troublesome obligations, regardless of how little per time than discounting."
This is coming regardless of the IPPs discounting a few energy obligations for government and its connected associations. As of late, the 2020 State Ownership Report uncovered that ECG, the Volta River Authority and other energy related establishments have created gain.
However, the Chamber of Independent Power Producers said for them to announce benefit in the arrangement of naturally commanded administration to the general population is a deviation from the center order and rather rivaling the private utilities specialist organizations, adding, "and this is supposed to bring about levy decrease to make the power duty in Ghana cutthroat and not to look for an expansion in tax."
"You reviewed that the GoG/MoF laid claims in ongoing past, through the mid-year spending plan survey to the reality the ECG/GoG is obligation ridden in light of take or pay PPAs. GoG in a resulting notice of use to general society on February this year uncovered that it has made investment funds of $13.2 billion through the renegotiation endeavors additionally that the Average Cost of Generation for the IPPs have declined to 16.2 pennies/kWh - 10.5 pennies/kWh. Assuming this asserted reserve funds are valid and genuine, it ought to be uplifting news to the area income necessity and in particular acclimate to the advantage of ECG. By implication, this ought to support ECG's income and there ought to be no legitimization to increment tax for ECG to make abundance income", Mr. Apetorgbor said.
He tested the ECG specifically that in the event that it asserted creating gain, it implies it have overabundance income that it has accomplished by means of effectiveness, mechanically and economically.
This he accepts will bring about duty decrease to make the power tax in Ghana serious and not to look for an expansion in levy.
As of late a media distribution uncovered that ECG burned through $1.5 billion to keep up with and update its framework. The Chamber of IPPs said the judicious exercises are intended to work on its framework and thus a decrease in functional expense, and besides not to increment it.


COMMENTS
LEAVE A REPLY