The Electricity Company of Ghana (ECG) is expected to meet with independent power producer Sunon Asogli Power (Ghana) Limited today, December 8, 2023, to deliberate on payment plans for a $60 million debt.
It would be recalled that Sunon Asogli Power shut down its plant on Monday, December 4, citing the government’s delay in honouring its financial obligations as the reason.
However, the firm suspended its decision for a week following an assurance from the Minister of Finance and a Minister of State to settle the debt.
“Kindly confirm our understanding that we shall be paid an interim sum of $60 million in two tranches. The first tranche is $30 million to be paid this week and the second tranche in the week of 11th December 2023,” a statement issued by Sunon Asogli Power (Ghana) Limited dated December 4, 2023, stated.
READ ALSO: Sunon Asogli Makes U-Turn On Plant Shutdown
Today’s meeting will focus on modalities for clearing the debt owed by the government.
Over the years, Independent Power Producers (IPPs) have complained about the government’s indebtedness to them. However, several efforts, including threats to suspend operations, have not yielded any substantial results.
According to the company, the accumulating unpaid bills have significantly impacted its operational capacity, making it unsustainable to continue without addressing these financial challenges.
As of July 2023, there were reports that the government’s debt to the IPPs had hit about $1.6 billion.
Meanwhile, the IPPs had described the recent 1.52 per cent reduction in electricity tariffs announced by the Public Utilities Regulatory Commission (PURC) as unacceptable.
The IPPs said the reduction would affect ECG’s debt restructuring efforts.
The President of the IPPs, Dr. Elikplim Apetorgbor, revealed that ECG will struggle to pay its debt.
He further indicated, “We are on life support and cannot guarantee continuity. If you give us a haircut, say a 30% or 40% reduction, who is going to pay our debts for us?”.
In a related development, President Akufo-Addo has assured that his government will remain steadfast in ensuring a consistent power supply despite the fluctuations in global energy prices, as the alternative is not acceptable.
Speaking at the inauguration of the US$40 million 161-kilovolt GRIDCo, ECG Bulk Power Supply Point at Adabraka in Accra on Tuesday, June 13, the President emphasized that the nation would not revert to the era of power outages, known as “dumsor,” which occurred during the tenure of former President John Dramani Mahama.