Business

ECG appreciates gov’t resolve to settle debts

The Electricity Company of Ghana (ECG) has clarified its position on the assertion by the Energy Ministry that debts owed the company by the government had been paid.

This follows opposition by some members of the Minority contesting the veracity of the claim.

The Energy Minister, Peter Amewu on May 20, revealed that the government, at the end of 2019, paid all of its bills to the Electricity Company of Ghana (ECG), leaving a credit of GHc500,000.

The company, in a statement released Thursday, May 21, 2020, said explained that government “averagely paid GHc2 billion directly to ECG’s suppliers (i.e VRA, IPPs and GRIDCo) to defray GoG’s indebtedness to ECG.”

The statement signed by Managing Director Kwame Agyemang-Badu further explained that this payment as at the end of 2019 leaves a credit balance of GHc505.8 million.

“Considering the GoG’s average bill of GHc100 million a month, the outstanding GoG credit of GHS505.8 million is enough to pay its bill for January to April 2020.”

An amount of GHc4.14 billion has also being paid “directly to various fuel suppliers and power producers and is yet to be credited to GoG’s account under the ongoing reconciliation exercise.”

The ECG, however, expressed appreciation to the government “because the company’s balance sheet is now stronger than before.”

 

Source: goldstreetbusiness.com

Related posts

BoG to save cedi’s free fall with $650m of cocoa syndicated loan

EllSamwise King

GRA Sued Over CTN As Policy Kicks Off Oct. 15

EllSamwise King

Carnegie Corporation meets scholarship beneficiaries

EllSamwise King

Leave a Comment