ECG’s $259 Million Debt Forces Sunon Asogli to Cease Operations
Sunon Asogli Power Ltd, a key player in Ghana’s energy sector, has halted operations due to a $259 million debt owed by the state-owned Electricity Company of Ghana (ECG), the company announced on October 16.
The power producer shut down its facilities on October 8 after prolonged efforts to resolve the debt proved futile.
In a strongly worded statement, Sunon Asogli said it had “no alternative” but to cease operations, citing ECG’s persistent failure to meet payment obligations.
The company noted that it had not invoiced for idle capacity charges—a practice followed by other independent power producers—demonstrating what it described as a “high level of consideration” towards ECG and the government.
However, despite these concessions, ECG’s debt to Sunon Asogli grew by 23% in the first nine months of 2024. Only 22.6% of invoices for that period have been settled, mostly through the country’s Cash Waterfall Mechanism.
This development highlights the precarious financial position of Ghana’s power sector, with mounting debts threatening the stability of energy supplies.
The decision by Sunon Asogli to halt operations underscores the growing strain on the country’s electricity grid amid concerns over ECG’s liquidity and broader financial health.
According to the African Centre for Energy Policy (ACEP), data from the Public Utilities Regulatory Commission (PURC) shows that ECG experienced under-recoveries of GHS 13.6 billion between August 2023 and July 2024, with an alarming revenue collection rate of just 43% over this period.
Furthermore, ACEP cites the Energy Sector Recovery Program, which estimates that power sector shortfalls between 2019 and 2023 amounted to approximately $8.25 billion, a figure ACEP described as an unsustainable drain on public resources.
Currently, the total energy sector debt stands at some $1.74bn with over $1.2bn owed in legacy IPP debts; $450m owed for gas payments to operators of the OCTP oil field, $20m debt to WAPCo and revenue under-recoveries of some $67m by the ECG.
