ECG Takeover: Staff Apprehensive

ECG staff PDS

Scores of staff of the Electricity Company of Ghana (ECG) are apprehensive over the takeover by Power Distribution Service (PDS) Ghana Limited as the new electricity service provider.

The Ghana News Agency observed during a tour of ECG offices at Accra East, Volta River Authority Head Office, and Accra West, that normal work was not interrupted on the first working day after the takeover.

Some of the workers who spoke to GNA on condition of anonymity, however, expressed anxiety stressing that in Ghana any change of administration comes with workers being asked to go home.

“Even though we have been assured of the security of office, we are still monitoring the situation closely,” a worker told the GNA.

Some of the customers also said on day one of the takeover that operation has been normal. The premises are also yet to be branded under the new brand identity.

Meanwhile, the new electricity manager, PDS has issued a directive urging all customers of ECG to take note of the change of ownership.

“Power Distribution Services are now the electricity service provider in Ghana in all ‘ECG’s operational areas in the southern Distribution Zone of Ghana.

“We also urge our cherished customers and stakeholders that, all business transactions including payments of electricity bills especially (cheques) must be in the name Power Distribution Services (PDS) Ghana Limited,” the statement said.

It will be recalled that Manila Electric Company (Meralco) officially took over running ECG from March 1st this year, under a 20-year concession agreement.

The negotiated Transaction Agreements – namely the Lease and Assignment Agreement, Bulk Supply Agreement, and Government Support Agreement – to secure the proposed Private Sector Participation (PSP) in ECG were approved by Cabinet and ratified by Parliament.

The Concessionaire, according to the agreement, is expected to inject an amount of $580m into the distribution system during the agreement period’s first five years.

The Bulk Supply Agreement between ECG and the Concessionaire deals with the Concessionaire’s back-to-back purchase of the capacity and energy made available to ECG under the Power Purchase Agreements (PPAs).

The Concessionaire will do nominations and ECG will supply the power to be paid for by the Concessionaire.

ECG will sell all capacity and energy made available under the Portfolio PPAs to the Concessionaire, in exchange for payment by the company of all capacity and energy charges on a back-to-back basis.

With regard to the Government Support Agreement, it involves government providing a sovereign guarantee to indemnify the Concessionaire for any substantial breach by ECG of the terms and conditions under the Lease and Assignment Agreement and Bulk Supply Agreement.

The areas where the sovereign guarantee is being provided are payment of electricity bills supplied to Ministries, Departments and Agencies (MDAs); and Buy-Out Price after the expiration of the 20-year concession period.

The Concession approach is advantageous to the government, partly because the Concessionaire is responsible for all major new investments. This is expected to help minimize the impacts of such investments on the national budget.

Again, the Concessionaire takes responsibility for the delivery and operation of ECG’s power distribution and services infrastructure; thereby transferring the inherent risks from government to the Concessionaire.

credit: GNA

Publish on Apt

Do you have any Social, informational, educational or entertaining stuff that should be featured on www.aptnewsghana.com?

Please submit your stories, pictures, and videos to us via WhatsApp: +233548388489 or click on the icon on your screen. Alternatively, email us: aptnewsghana@gmail.com

RSS APO Group – Africa-Newsroom: latest news releases related to Africa

  • A Whole New Finals: NBA Restart by the Numbers September 29, 2020
    Download logoThe Eastern Conference champion Miami Heat and the Western Conference champion Los Angeles Lakers will tip off the NBA (http://www.NBA.com) Finals 2020 presented by YouTube TV (https://bit.ly/2S6vdmK) on Wednesday, Sept. 30 at 9 p.m. ET on ABC and ESPN Radio in the United States. The NBA Finals will reach fans live in 215 countries and […]
  • Data Emerges as Crucial Component of Post-COVID-19 Oil Industry Recovery September 29, 2020
    The ‘Leveraging the Power of Technology for Oilfield Optimization’ webinar was organized by Microsoft in partnership with Africa Oil & Power (http://www.AfricaOilandPower.com/) and the African Energy Chamber; Lower production costs are paramount to a revamped global oil sector with technology to spearhead cost reductions; The COVID-19 pandemic has accelerated technology adoption as an integral component […]
  • Coronavirus - Rwanda: COVID-19 case update (28 September 2020) September 29, 2020
    Total cases: 4,832 (+12) Recovered: 3,117 (+18) | 64% Active cases: 1,686 Tests: 490,225 (+1,283) Deaths: 29 (+0) | 0.6% Test positivity rate: 0.9%Distributed by APO Group on behalf of Ministry of Health, Republic of Rwanda.Media filesDownload logo
  • Coronavirus - Kenya: COVID-19 Update (29 September 2020) September 29, 2020
    Download logoToday 210 people have tested positive from a sample size of 3,604 tested in the last 24 hours, bringing to 38,378 the number of confirmed positive cases in the country. Our cumulative tests are now 545,019.Distributed by APO Group on behalf of Ministry of Health, Kenya.
  • Coronavirus - Gambia: COVID-19 case update (29 September 2020) September 29, 2020
    Active cases: 1,306 New cases: 10 New tests: 127 Total confirmed: 3,579 Recovered: 2,161 (+0) Deaths: 112 (+1)Distributed by APO Group on behalf of Ministry of Health, The Gambia.Media filesDownload logo
  • Baker Hughes Announces Major LNG Turbomachinery Order from Qatar Petroleum for the North Field East (NFE) project September 29, 2020
    Order for main refrigerant compressors (MRCs) consists of 12 gas turbines and 24 centrifugal compressors, as part of four additional LNG “mega trains”; Among largest LNG deals for Baker Hughes in the past five years, for both MTPA and equipment awarded; Project represents a significant step toward boosting Qatari LNG production capacity from 77 million […]
  • Coronavirus - South Africa: COVID-19 statistics in South Africa (28 September 2020) September 29, 2020
    Tests conducted: 4152480 Positive cases identified: 671669 Total recoveries: 604478 Total deaths: 16586 New cases: 903Distributed by APO Group on behalf of Republic of South Africa, Department of Health.Media filesDownload logo
  • Coronavirus - South Africa: COVID-19 update for South Africa (28 September 2020) September 29, 2020
    COVID-19 Update: Our recoveries now stand at 604478 (90% recovered) with a total of 50605 active cases. Regrettably, we report 188 more COVID-19 related deaths, bringing the total number of deaths to 16586. Click the link to view the full report: https://buff.ly/2S6LGHt.Distributed by APO Group on behalf of National Institute for Communicable Diseases, South Africa […]
  • 800 African Real Estate Investors and Developers Meet Online to Build a Post Pandemic Future September 29, 2020
    Speaking ahead of the 11th annual African Property Investment (API) Summit Virtual (https://www.APISummit.co.za/), which is taking place online from 30 September – 01 October 2020, Standard Bank’s Head of Real Estate Finance, Africa Regions, Niyi Adeleye, commented that while the Covid-19 pandemic has impacted the sector, those with the necessary capital have continued to seize […]
  • Legal Scandal in the Dem. Rep. of the Congo Surrounding Businessman-Politician Moïse Katumbi September 28, 2020
    Download logoWhile several French court rulings have dismissed all of his claims, Moïse Katumbi persists in his attempts to seize assets that he sold several years ago, citing local court decisions. Interventions by armed forces in the Katanga region on behalf of Moïse Katumbi constitute a threat to the rule of law in the country. […]
About Editor 602 Articles
Joe Bright Nyarko Journalist/Communication Researcher. Environment & Sustainability Advocate. Managing Editor of aptnewsghana.com, a non-profit news portal with bias towards environment and sustainability issues, rural development policies and gender & inequality.