Gov’t continues to pay IPPs, GSs as consultative meetings continues

Gov’t continues to pay IPPs, GSs as consultative meetings continues
Source: Ghana | Myjoyonline.com | NSA
Date: 21-09-2019 Time: 01:09:02:am
Finance Minister, Ken Ofori-Atta announced in July that the country will only pay for power and gas that has been consumed

Government has put on hold its initial instruction regarding the payment of Independent Power Producers (IPPs) and Gas Suppliers (GSs).

A statement copied to Joy News said this is to allow time for an ongoing collaborative consultation process with the IPPs and GSs.

“…Government considers it appropriate to place a hold on its initial instructions issued on August 1, 2019, whereby government instructed the Electricity Company of Ghana (ECG), Ghana National Petroleum Corporation (GNPC) and Power Distribution Services (PDS) to only pay for power or gas consumed,” the statement said.

The Finance Minister, Ken Ofori-Atta announced that decision in July during his mid-year budget presentation in Parliament.

“Starting August 1st 2019, Government is to pay for energy and gas that we actually consume. All take-or-pay contracts will be renegotiated to convert to Take-and-pay for both PPAs and Gas Supply Agreements (GSAs).

“Government will seek Parliamentary ratification,” the Finance Minister added.