The Electricity Company of Ghana (ECG) has assured the public of uninterrupted power supply following successful negotiations with Independent Power Producers (IPPs) to address outstanding arrears.
This assurance comes after the IPPs threatened to shut down multiple power plants due to unpaid debts, sparking fears of a potential return to widespread power outages, locally known as “dumsor.”
Speaking to the media, ECG’s External Communications Manager, Nii Ayiku Ayiku, confirmed that recent negotiations had averted the anticipated crisis.
“The Acting Managing Director has assured us that we are fully engaged with the IPPs to prevent any recurrence of the outages experienced over the weekend.
We are confident that everything is on track,” he stated.
According to reports, the government has reached a temporary agreement with the IPPs, paying off part of the debt and establishing a payment plan to settle the remaining balance.
This arrangement is expected to stabilize electricity generation and ease tensions within the energy sector.
While ECG has committed to maintaining a consistent power supply, industry stakeholders have called on the government to implement a sustainable financial framework to prevent similar disputes in the future and ensure the long-term reliability of Ghana’s energy supply.
In similar news, Sunon Asogli Power Ghana Limited has indicated it has resumed operation of its 560MW power plant, thanking the Vice President, Dr Mahamudu Bawumia, the Minister of Finance, Dr Mohammed Amin Adam, and the Minister of Energy, Herbert Krapa, for spearheading the release of “an emergency funding to address our critical financial need”.
Ghana’s largest Independent Power Producer (IPP), Sunon Asogli Power Ghana Limited, halted operations for more than a month protesting the national power distributer, Electricity Company of Ghana (ECG), owing it to the tune of USD259 million.
Sunon Asogli’s protest reduced power generation, resulting in load-shedding or dumsor by ECG as several places across the nation experienced power outages between 6 PM and midnight almost every week.
In its November 25 statement, Sunon Asogli said, “We wish to express our sincere appreciation to the Minister for Finance, Hon Mohammed Amin Adam, and the Minister for Energy, Hon Herbert Krapa, for their intervention, to release an emergency funding to address our critical financial need. We have returned to operations today, Monday, November 25, 2024, at 3 PM.”
“We have submitted our final version of the Restructuring Terms Sheet to the Ministry of Finance and Electricity Company of Ghana (ECG) in August, for finalisation and signing soon. We are confident that a win-win solution that will ensure the stability and reliability of Ghana’s energy sector will be achieved.”
The statement said, “We hope the Electricity Company of Ghana (ECG) can adhere to the spirit of the contract and diligently honor their financial obligations in the PPA.
“We would like to commend H.E. the Vice President [Mahamudu Bawumia], for his intervention in ensuring the payment to us for our return to operation.”
“We deeply regret the impact of our shutdown,” the statement signed by Chairman Qun Yang ended.
