Editorial

NEW POWER DISTRIBUTION ARRANGEMENT MUST BENEFIT ALL

PTODAY marks the beginning of a very important journey in the life of the Electricity Company of Ghana (ECG).

It is the day that private company, the Power Distribution Service (PDS) Ghana Limited is taking over electricity distribution from the ECG for the next 20 years.

From hence, PDS is the electricity service provider in the operational areas in the Eastern, Western, Central, Greater Accra and parts of Ashanti Regions.

The takeover of the electricity distribution is part of the execution of an agreement between Ghana US MCC under the 2nd Millennium Challenge Compact with the objective of increasing private sector investment and the productivity of businesses.

Specifically, the electricity distribution agreement is operating under the ECG Financial and Operational Turn around project (EFOT), which seeks to introduce private sector participation in the management and operations of ECG, who would continue to operate as bulk energy trader and the asset                                                    owner.

This is a significant departure from what we are used to, where ECG distributes power to customers and collect money from them.

By the new arrangement, PDS, known as concessionaire, would lease ECG assets for 20 years and expected to invest a minimum of $580million into the power distribution network during the first five years of operation under the MCC to support the power sector.

It is envisaged that the takeover would inject a high level efficiency and diligent management among others to satisfy the customer.

The Ghanaian Times need not remind PDS of some of the challenges customers faced in the past and the deficiencies of the ECG itself.

Our expectation and that of the republic is that PDS would distribute electricity in a very efficient manner in order to stop power theft (illegal connections) or commercial loses.

In that way, more customers would pay their bills and the revenue generated could be used in improving the distribution of electricity in the company.

 We believe that if PDS delivers on its mandate, it would justify the decision by the government to enter into the agreement and also attract more investment in the sector.

We urge PDS to continue to collaborate with ECG and other institutions in the power generation and distribution sections to give the public quality and timely service.                       

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