Lawyers for Power Distribution Services (PDS) Ghana Limited have indicated that their client (PDS) was suspended by the government from carrying out its retail sale of electricity in the country on the basis of misinformation and misrepresentation of facts.
It would be recalled that on 30th July 2019, the Ministry of Information issued a press statement announcing that the Ministry of Finance and the Electricity Company of Ghana (ECG) had suspended the concession agreement between them and the Power Distribution Services (PDS) Ghana Limited with immediate effect.
This was followed by two letters from the Energy Commission, one purporting to cancel PDS’ licence and another announcing the transfer of the licence to ECG, urging PDS to cooperate with ECG on the process of transferring the licence.
Government of Ghana through the Information Ministry also announced further investigations into the matter which is expected to be completed in the course of 30 days.
But lawyers of PDS from Minkah-Premo & Co. in a press statement, said the narrative by the Government of Ghana, and the conduct of ECG and Energy Commission seemed to suggest wrongdoing on the part of PDS on the basis of misinformation and misrepresentation of the true facts.
According to the statement, it was “therefore important for the position of PDS on the matter to be stated in order to paint a true picture of the situation as truly obtains.”
Events
The details of events leading up to the suspension of PDS were spelt out in the statement.
By virtue of a number of legal arrangements between PDS and ECG and the Government of Ghana acting through the Ministry of Finance, it recounted, PDS had been given a concession to manage, operate and invest in the electricity distribution business of the utility covering what is described as the Southern Distribution Zone of Ghana (SDZ).
It explained that these Legal Arrangements are the Lease and Assignment Agreement (L.A.A), the Bulk Supply Agreement (BSA) and Government Support Agreement (GSA).
PDS is mandated by virtue of two licences, namely the Electricity Distribution Licence and the Electricity Retail Sale Licence both issued by the Energy Commission to, among others, engage in the supply and distribution of electricity in Ghana, according to the statement.It added that it was a condition of both the LAA and the BSA for PDS to provide payment securities for the LAA and BSA.The statement highlighted that Clause 5.11 and Clause 5.2 of LAA and BSA […]