Government has moved to suspend 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 Ministry of Information on Tuesday evening announced the suspension of the PDS with immediate effect.
The decision according to 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.”
“The government is conducting a full enquiry into the matter, and the outcome will inform the next course of action. Government has taken steps to ensure distribution, billing and payment services continue uninterrupted,” the statement added.