The Independent Power Producers (IPPs) have threatened to cut the supply of power if government fails to settle its outstanding debts owed the companies by June 30, 2023.
The IPPs are warning that it will shut down their plants if the government does not make payment of the $1.73 billion debt in the next three or so days.
In an interview on Citi FM on Tuesday, June 27, the CEO of the IPPs, Elikplim Apetorgbor, said the government is yet to begin negotiations for payment, despite earlier indications that talks were underway for restructuring the energy sector debt.
”Basically we are saying that we lack the resources to continue generation beyond 30th June and we are giving them [Finance Ministry] up to March. We didn’t hear from them but the fact is beyond June we just don’t have the resource to continue to supply.”
Mr. Apetorgbor further indicated that they have not been engaged in any negotiations from the Electricity Company of Ghana (ECG) as well.
He emphasised the urgent need for action, highlighting that if no remedial measures are taken, they cannot guarantee a stable power supply after June 30.
“We have sacrificed a lot for the economy, the debt in question is already debt we have borrowed from our lenders and we can’t explain to them that we can’t pay because Ghana’s economy is in shambles, they won’t listen,” Mr. Apetorgbor added.
Finance Minister Ken Ofori Atta recently announced plans for vigorous reforms in the energy sector to address the mounting debts and sustainably reduce losses.
These reforms aim to tackle the sector’s legacy debt and the projected shortfall between 2023 and 2025, caused by challenges faced by State Owned Enterprises and Independent Power Producers.
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