ECG working to disburse cash to IPPs by end of week
The Electricity Company of Ghana (ECG) is confident of settling debts Independent Power Producers (IPPs) by end of this week to avert any disruptions in electricity supply.
Despite government’s indebtedness to the power generation companies the ECG and IPPs have reached a unique payment agreement promoting the latter to suspend its plans to cut power supply to the national grid on July 1.
The power producers had demanded a 30% interim payment of the arrears, but after their June 30 deadline expired, they agreed to continue powering their plants after engagements with ECG.
Managing Director of ECG, Samuel Dubik Mahama tells Citi Business News, the company is making headway with its arrangements and hopes to finalize it soon.
“We have a few more things to do together as partners, so that certain documents will be signed, and some conclusions reached so that the necessary disbursements can be made by end of week for everything regarding cash can happen”, he said.
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.
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.
They were thus demanding a 30 percent interim payment before the close of Friday June 30, 2023.
In fact, the Chamber had in an email directed its members comprising Sunon Asogli, Cenpower, Karpowpership, AKSA, Twin City Energy and CENIT not to declare available power capacity to the system operator from July 1-8, 2023.
But the Chairman of the IPPs stated that “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.”
Source: Ghana Business
