Deputy minister for energy, Andrew Egyapa Mercer, has commended the manager of the Electricity Company of Ghana, Samuel Mahama, over his commitment to retrieve billions of cedis from companies and individuals indebted to his outfit.
According to him, the revenue that ECG generates is used to pay everybody else in the value chain of operation, hence the need to ensure effective collection of monies from defaulters. He explained that if ECG is not performing, then the country is faced with the issue of non-payment to the Independent Power Producers and transmitters which in itself, poses a threat to Ghanaians and the economy as whole.
Mr Mercer stated that it’s important that Ghanaians and stakeholders collectively support ECG to be efficient in collecting the revenue for the power that it has sold. This, he iterated, will ensure its ability to pay everybody else in the value chain.
“Of course, this is only the beginning, we’ve seen clear plans that they’re rolling out besides what the ministry itself is doing and government to see how we introduce much more efficiency into ECG’s operations so that they become much more responsive to paying for the value chain.
“What is even more refreshing is the renewed impetus that the chief executive has brought to bear in the revenue collection drive and his commitment to not making a nine-day wonder but sustain it continuously; so that at all times, they will be able to generate requisite revenue to pay for their bills down the value chain.”
Andrew Egyapa Mercer
Commenting on the alleged disconnection of power at the energy ministry by ECG, Mr Mercer clarified that the blackout was not as a result of the ministry’s indebtedness to the power distribution company, insisting that the problem was more technical in nature. He however stated that the exercise that is being carried out by the ECG has the full support of the ministry of energy.
“The ministry was on pre-paid. So, it cannot be that the ministry of energy was indebted to the ECG but it was a technical problem that led to our lights going off on that particular day for which we sought the intervention of the ECG’s managing director to intervene…”
Andrew Egyapa Mercer
AGM to pull out of deal with GNPC
The deputy energy minister stated that it’s important that the country sustains its electricity generation as the entire value chain right from generation, fuel is used to power the generation and the transmission which is all paid for by the revenue that the Company generates. He highlighted that because the power producers cannot collect monies directly from end-users for the electricity generated, it is only ECG that interfaces with the end-user.
Furthermore, he emphasized that the ministry would do its part in ensuring that the ECG is well-equipped to perform its mandate.
“Matthew Opoku Prempeh is focused and committed to the ECG being a viable and sustainable state entity. ECG has the full endorsement and support from the ministry of energy.”
Andrew Egyapa Mercer
Commenting on the decision by AGM, a sister company of Norway-based, Aker Energy, to pull out of the $1.65 billion transaction with the Ghana National Petroleum Corporation (GNPC), Mr Mercer highlighted that as far as he is concerned, the approval that parliament gave was for the ministry of energy and GNPC to go and negotiate with Aker energy for a potential acquisition by GNPC in both the Aker and the AGM bloc.
He indicated that the negotiation has not been concluded, so to that extent, no definitive document has been submitted to parliament for consideration and approval to consummate the transaction.
“Obviously, within the confines of the law which says that when you execute a petroleum agreement, you have a certain timeframe within which you need to do exploration – I believe it’s seven years, within that period, there are obligations that you need to meet. So, the fact that you are having the negotiation for one party to potentially acquire a stake in those blocs does not under any circumstances derogate from you performing your obligation.”
Andrew Egyapa Mercer
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