Independent Power Producers suspend power shutdown plans amidst productive talks with ECG
In a significant development for Ghana’s energy sector, the Chamber of Independent Power Producers of Ghana (IPPG) has decided to temporarily suspend its planned shutdown of power plants following fruitful engagements with the Electricity Company of Ghana (ECG). The decision comes after the IPPG had directed its members to halt operations from July 1 to July 8 if the government failed to address the long-standing issue of outstanding payments, amounting to $1.73 billion.
The IPPG, in a statement released on Friday, June 30th, expressed optimism as all Independent Power Producers (IPPs) agreed to continue operating their power plants beyond July 1, 2023. This significant development stems from an offer of payments extended by the ECG, allowing the IPPs to operate during this interim period. The move is aimed at granting the Ghanaian government and ECG the necessary respite to address the arrears in the energy sector and fulfill their contractual obligations.
Highlighting their commitment to finding a lasting solution, the IPPs underscored the importance of this understanding. The IPPs conveyed their gratitude to the Chairman and Ranking Member of the Parliamentary Select Committee on Mines and Energy, as well as the committee members, for their timely intervention in facilitating a constructive dialogue. The involvement of respective lenders and shareholders in the discussions was also acknowledged and appreciated.
While the IPPs expressed hope that the temporary agreement will pave the way for a permanent resolution of the energy sector debt, they made it clear that failure to address the outstanding financial issues would leave them with no choice but to proceed with their initial decision to shut down operations, without prior notice.
The Chairman of the IPPs conveyed his satisfaction in reaching an interim understanding with the ECG, highlighting the crucial role played by IPPs in delivering reliable power to the Ghanaian people. Moreover, he expressed appreciation for the support and collaboration received from the general public and all well-meaning Ghanaians throughout the process.
Moving forward, the IPPs reiterated their commitment to engaging with the government and ECG to address the financial challenges at hand. With ongoing cooperation, the Chamber remains confident that a mutually beneficial solution can be achieved, ensuring the continued contribution of the IPPs to the development and stability of Ghana’s energy sector and the broader economy.
This development marks a significant step in resolving the long-standing issue of outstanding payments owed to Independent Power Producers in Ghana. The temporary suspension of the planned shutdown brings much-needed relief and paves the way for constructive discussions between the IPPs, the government, and the ECG to find a sustainable resolution that will ensure the uninterrupted supply of electricity to the nation.
