PrimeNewsGhana

PDS' suspension is partial, they are still operating - Martin Kpebu

By Mutala Yakubu
PDS
PDS

Legal Practitioner Martin Kpebu says the suspension of government's concession agreement with Power Distribution Service (PDS) is partial because they still operate.


The government last week suspended its concession agreement with the Power Distribution Services (PDS) who were the distributors of electricity in Ghana.

This moves means that the Electricity Company of Ghana will once again take full control of power distribution.

Many felt the suspension meant PDS as a company will not be operating again but Mr Kpebu says they are still operating even though they are not in charge of power distribution.

"We have to be practical, the word suspended has been used but as we sit here PDS has been allowed to continue the work," he spoke on Joy FM's NewsFile.

The Power Distribution Service was given two licenses, only one was withdrawn by the Energy Commission that is the electricity retail license. The license that allows them to control assets was not withdrawn so the suspension does not affect all their operation.

Suspension

The government suspended its concession agreement with the Power Distribution Services (PDS) who were the distributors of electricity in Ghana.

This moves means that the Electricity Company of Ghana will once again take full control of power distribution.

The decision according to the government was taken following the detection of fundamental and material breaches of PDS’ obligation in the provision of Payment Securities (Demand Guarantees) which was discovered upon “further due diligence.”

“The Demand Guarantees were key prerequisites for the lease of assets on 1st March 2019 to secure the assets that were transferred to the concessionaire,” a statement signed by the Minister of Information, Kojo Oppong Nkrumah stated.

Despite the action, the statement clarified that “The general public and customers are assured that this development will not interfere with the distribution of electricity services to customers.”

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