The Chamber of Independent Power Producers Ghana (IPPs) has announced the suspension of its planned shutdown of power plants that supply the national grid, despite the outstanding debts owed by the government. This decision comes after productive discussions with the Electricity of Ghana (ECG).
As a result of these engagements, the IPPs have agreed to continue operating their power plants beyond July 1, 2023.
In a statement released on Friday night, the IPPs stated, “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 energy sector had expressed concerns over the potential power crisis if the IPPs had followed through with their threat to cut supply to the national grid due to the almost US$2 billion outstanding arrears.
The IPPs, which control approximately 50 percent of the country's generation mix, highlighted that this debt had hindered their access to working capital, impeding their ability to finance essential inputs such as chemicals for water treatment and other supplies, many of which are priced in foreign currency.
Initially, the IPPs had demanded a 30 percent interim payment before the end of June 30, 2023, and had instructed their members not to declare available power capacity to the system operator from July 1-8, 2023.
However, the Chairman of the IPPs expressed satisfaction with the interim understanding reached with ECG, stating, “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.”