National power-cut looms as IPPs threaten to instantly withdraw electricity services

by Business Zone

The Independent Power Producers and Bulk Distributors will withdraw its services in the coming days, a situation that could trigger power cuts across the country.

A letter from the IPPs, signed by its Executive Director, Elikplim Kwablah Apetorgbor to the Ghana Grid Company Limited with the Energy Minister and the Electricity Company of Ghana in copy, requested government, to as a matter of urgency, settle 80 percent of its debt to the power producers.

The letter to GRIDCo said the action has become necessary as it demands ECG and government to settle its indebtedness worth US$1 billion to the IPPs.

The letter said the respective Central Control Rooms of the IPPs are expected to communicate with the GRIDCo’s System Control Center for the potential shutdown.

A copy of the letter

Ghana has a total of about 15 IPPs but only five are operational and reliable and are producing more than 40 percent of the country’s total installed electricity capacity.

Though government has settled some of the debts to the IPPs, it still owe the power producers some substantial amount of money.

The debt, as of June 2020 stood at about US$1.4 billion. However, government has settled some and have been making bullet payment of subsequent power costs which is a worry to the IPPs.

Already, government has settled the one billion dollar legacy debt owed bulk oil distributors through cash and bond.

By Wisdom Jonny-Nuekpe

You may also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy