Settle debt owed WAPCo to avoid ‘Dumsor’ – Minority tells govt

This call comes in response to recent power outages in various parts of the country on October 26, attributed to gas supply challenges. The Ghana Grid Company Ltd (GRIDCo) explained that the limited gas supply to Tema resulted in a power supply deficit of 550MW.

In a statement issued by the minority on Friday, they emphasized the need for the government to promptly make a minimum payment of $8.31 million to the West Africa Gas Pipeline Company (WAPCo) to prevent further power interruptions.

In the medium to long term, the minority recommends that the government address ECG's total debt to WAPCo and reinstate the Cash Waterfall Mechanism to prevent potential power outages from independent power producers (IPPs) also seeking payment.

The minority representative, who is a member of the Mines and Energy Committee in Parliament, stated that the Gas Transportation Agreement between ECG and WAPCo included a guarantee against ECG's failure to pay for gas transportation, with the Ghana National Petroleum Corporation (GNPC) serving as the guarantor.

When ECG defaulted on payments, WAPCo informed the guarantor about their intention to suspend gas transportation services on October 17, 2023, if the minimum expected payment of $8.31 million was not made.

The cumulative outstanding invoices currently amount to US$17.13 million after GNPC paid $2.00 million despite efforts to prompt ECG to make the required payments, these attempts have been unsuccessful as a result, WAPCo reduced the flow of gas from the Western Region to Tema, leading to the limited gas supply to the Tema area and causing a power supply gap of 550MW during peak hours.