‘Dumsor’ Looms As Chamber Of IPPs Directs Members To Cut Power Supply From July 1
The Chamber of Independent Power Producers (IPPs) has directed its members to cut power supply to the national grid, beginning July 1, 2023, to July 8, 2023.
The Chamber of Independent Power Producers (IPPs) is currently requesting the government to settle 30% of the nearly owed $2 billion debt.
The Chamber has issued a statement to its six members urging the thermal power producers not to supply power to the national grid beginning Saturday, July 1, 2023.
“Further to our planned industrial action on July 1, 2023, to press home our demand, we would like each IPP to nominate nothing (zero nominations) and not declare an availability to the System Operator, beginning July 1 to July 8, 2023”.
“We take this opportunity to salute you for your solidarity. We are determined to get results at all cost”.
The six members include Sunon Asogli, Cenpower, Karpowership, AKSA, Twin City Energy, and CENIT.
Together, they produce 2010 megawatts of power.
The cut of power to the national grid will lead to a possible power fluctuation commonly known as ‘dumsor’.
It will be recalled that on June 23, 2023, the Chamber of IPPs issued a final reminder to the government to pay the 30% debt to avoid a power shortage.
According to the power producers, their calls on the government to pay the IPPs an interim payment of 30% of outstanding arrears of each IPP by June 20, 2023, have not been addressed.
“We refer to our letters dated March 27, 2023, and May 25, 2023, with reference number IPGG/1/2023 and IPGG/2/2023 addressed to the Minister [Finance] by which the IPP Chamber stressed the urgent necessity for the government to prioritize payment of the outstanding arrears owed to members of the IPP Chamber to enable the IPPs to cover critical operational costs required to continue operations and pay overdue debt service”, it disclosed in a statement to the Finance Minister.
“We had indicated in our letters that IPPs needed to receive an interim payment of 30% of the outstanding arrears of each IPP by June 20 2023. Unfortunately, we have not seen any good faith indication or commitment of such impending payment from ECG/Government as of today, June 21, 2023, despite the Electricity Company of Ghana’s recent collection efforts, as reported in the media, which yielded circa ¢3.1 billion,” they explained.
“The members of the IPP chamber are now at a point where they are unable to persuade their creditors, contractors, and other key stakeholders to further defer payments owed to them and to continue operations,” the IPPs added.
The chamber called on the government, the Electricity Company of Ghana (ECG), and other stakeholders to treat this reminder with the urgency it deserves and take the necessary steps to forestall any dire consequences.