The Independent Power Producers were thus demanding a 30 percent interim payment before the close of Friday, June 30, 2023.
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IPPs to continue operation after engagements with ECG
Plans on shutting down power supply by the Chamber of Independent Power Producers Ghana (IPPs) over government debt owed them have been aborted after engagements with the management of the Electricity Company of Ghana.
IPPs
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Players in the energy sector expressed fears of a looming power crisis should the IPPs carry out their threats to cut supply to the national grid over the almost US$2 billion outstanding arrears.
A statement by the IPPs on Friday read, “As part of the understanding reached, all the IPPs have received an offer of payments from ECG to enable them to operate in the interim thereby providing the Government of Ghana (GOG) and ECG the needed grace period to address the outstanding arrears in the energy sector and to meet their contractual obligations”,
The letter added, “We are pleased to have reached an interim understanding with ECG, which enables us to continue our operations for the benefit of the good people of Ghana. We recognize the importance of our operations to the nation, and all the IPPs jointly remain committed to Ghana in delivering reliable power to the country. We also appreciate the support and collaboration we have received from the general public and all well-meaning Ghanaians throughout this process.”
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The IPPs which control about 50 percent of the country’s generation mix had highlighted that this debt has hindered their access to working capital, preventing them from financing crucial inputs such as chemicals for water treatment in thermal generators and other supplies, many of which are priced in foreign currency, primarily the US dollar.
To this end, the IPPs have agreed to keep operating their power plants after July 1, 2023.
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