President Mahama has declared that his administration will bring in more companies to generate power in Ghana.
He said that more Independent Power Producers (IPPs) are coming in and before they sign any agreement, they ask you to put down Letter of Credit (LC) and the time you do not pay them they draw down on the LC. And you have to top up the Letter of Credit back to what it was.
He told journalists in Accra, it means we must be collecting enough money at the distribution level to be able to pay the power producers. When the power producer was our good old Volta River Authority, it would not put off our lights….But when an IPP sets up its plant and you don’t pay, it will take it from the LC.
The President Mahama urged prompt payment of electricity bills so that when people don’t pay, we disconnect them.
The President Mahama continued we must improve competence at the Electricity Company of Ghana level. The worst crime is those who steal power. Power loss due to distribution should be below 15 %. It is estimated that we lose more than 25 % in distribution. If this happens we cannot collect money to pay the upstream companies. That is why we need to rearrange ECG under the MCC compact. It is targeted at restructuring Electricity Company Ghana.
Copyright © 2019 Ghanalive.TV. All Rights Reserved.