- Court rules in favour of ECG in PDS case
- PDS challenged the termination of a concession agreement with ECG
- PDS failed to provide a payment guarantee
An Accra High Court has dismissed a suit filed by Power Distribution Services (PDS) challenging the termination of the concession agreement between the PDS and the Electricity Company of Ghana (ECG), resulting in the cancellation of PDS distribution operating licenses. The agreement was for the management of the assets of the ECG and was signed in July 2018. The agreement covered the management of the assets of the ECG and a license for the distribution of electricity to the southern distribution.
However, the agreement was terminated by the ECG following the failure of the PDS to provide a payment guarantee in 2019. As a result, the PDS took the government to Court in 2020, asking the Courts to reinstate its distribution operating licenses. In addition to other prayers, the PDSasked the Court to ”a declaration that the exercise of administrative power by the respondent in cancelling electricity distribution and retail sale licences results from the respondent’s acceptance of the ECG’s rendition of the provisions of the transaction agreements regarding post-termination transitional period and rights of the applicant under the transaction agreements abridged the applicant’s rights”.
Justice Akua Sarpomaa Amoah, in his ruling, dismissed all relief sought by the PDS.