Independent power producer, Sunon Asogli Power (Ghana) Limited, has suspended its decision to shut down over government’s $60m indebtedness.
This follows a swift response by the Finance Minister, Ken Ofori Atta o cough $30m immediately to avert ‘dumsor’.
Government, according to a statement released by Sunon Asogli Power, has committed itself to pay the second tranche of $30m by the close of next week.
The company on Monday, 5th December, 2023 announced an indefinite shut down of its 560 Megawatts power plant due to the outstanding debt owed it by the Electricity Company of Ghana (ECG).
Per the statement signed by Chairman, Qun Yang, the shutdown would have started at 6:00 pm yesterday.
“This difficult decision became necessary due to avoidable delays in payment from the GOG/Electricity Company of Ghana (ECG) for power supplied, as well as, the unproductive engagements to find an amicable solution” portions of the statement said.
However, the swift intervention by government has prevented the already ongoing load shedding from escalating.
Its however unclear that lies ahead because government owes Independent Power Producers, over $1.4billion
It will be recalled that in June this year, the IPPs, which control 50 per cent of the country’s generation mix threatened to cut supplies if government does not urgently settle its indebtedness to them.
The Chief Executive Officer (CEO) of the Chamber of Independent Power Producers, Dr Elikplim Apetorgbor in an interview then said ..“If the ECG does not pay up part of the debt owed our members, they cannot guarantee continuous production of power. The situation is so dire that something urgent must be done,”
He explained that because of he debt the IPPS lacked operating cash inputs such as chemicals for cleaning water or the thermal generators and other supplies many of which were denominated to in foreign currency.
He added that the Chamber owed banks and are paying penalty for defaulting.