The Chamber of Independent Power Producers (IPPs) has issued a directive to its members to suspend power supply to the national grid starting July 1, 2023.
This decision comes in response to the government’s failure to address the outstanding arrears owed to the IPPs.
In an email sent to its members and obtained by a section of the media, the Chamber instructed each IPP to “nominate nothing” and “not declare an availability to the System Operator” from July 1 to July 8, 2023.
The deadline for the shutdown was set by the IPPs after their demands for a 30 percent interim payment of the arrears were not met.
The Chamber of IPPs consists of prominent companies such as Sunon Asogli, Cenpower, Karpowership, AKSA, Twin City Energy, and CENIT, which collectively control 47 percent of Ghana’s total power generation mix and contribute 67 percent of the country’s thermal power.
These IPPs argue that the outstanding debt, amounting to approximately $1.73 billion in cedis since January 2021, has severely impacted their ability to access working capital. This has hindered their operations and prevented them from financing essential supplies, particularly those priced in foreign currencies, such as chemicals for water treatment in thermal generators.
Elikplim Kwabla Apetorgbor, the Chief Executive Officer of the Chamber of Independent Power Producers, Distributors, and Bulk Consumers (CIPDiB), expressed concerns about the lack of resources to continue power generation beyond June 30.
Despite their efforts to negotiate with creditors and stakeholders, the IPPs have reached a point where they cannot sustain the supply without payment.
The IPPs have also rejected proposals for debt restructuring, as they cannot justify the situation to their lenders and continue operations amidst mounting financial strain.
The power crisis caused by the IPPs’ suspension of power supply could have far-reaching consequences for Ghana’s energy sector and the country as a whole.
The government must address the outstanding arrears and work towards a sustainable solution to ensure the continuous supply of electricity to meet the needs of businesses and households.
Time is running out, and immediate action should be taken to resolve the arrears dispute to prevent further disruptions to Ghana’s power supply.
Source: dailyguidenetwork.com
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This is serious. So 47 % of Ghana's energy requirements are left in the hands of the private sector to the extent that they can issue threats to government.? So for the 66 years that we went independent as a country, apart from Nkrumah who built the Akosombo dam, Colonel Acheampong, the Kpong dam and Kufour, the Bui dam , it didn't occur to the rest that government needed to own it's power needs? Is it the case that Ghanaians are not paying for the electricity they consume. Currently most domestic consumers are using pre paid meters so there is no way one can owe the power sector providers. For all you know someone we all know have not released funds to government agencies who consume power the most to pay the utility providers thus this problem. Only recently we saw ECG and VRA on a disconnection exercise at the ministries. Why can't government ensure that all ministries , departments and agencies have solar power panels in their roofings since we have the sun in abundance through out the year ? Why can't we do that? In Ghana , what do we do with the scorching sun, what? We beg the independent power producers(IPP's) , if they are looking at the behavior of Ghana's politicians , innocent Ghanaians will suffer through no fault of ours. Ministers, MMDCEs, CEO's who are paid huge salaries together with behind the scenes goodies are those who don't pay for electricity, it's the poor farmer, market trader, watchman , shoe maker, refuse collector, driver, driver mate, GPRTU book man , massenger, ice watet seller, who earns far less compared to those mentioned above are the one's who pay for electricity in Ghana . We just need a leader/ president who can think outside the box to take Ghana and Ghanaians out of this mess. How can half of a country's energy requirements be in the hands of private individuals, what then is the business of government? Colonel Acheampong, a barracks man paaa could see far thus the Kpong hydro dam. Then comes professor this, Doctor that, lawyer that, communications expert this, economist this, with nothing to show, always looking for knee jerk reactions to every situation and that is their version of leadership.