The Independent Power Producers (IPP) face a looming crisis as three of their critical power plants are on the brink of shutting down due to mounting debts owed by the government through the Electricity Company of Ghana (ECG).
Dr. Elikplim Kwabla Apetorgbor, Chief Executive Officer of the IPPs, has issued a stark warning, revealing that the ECG owes IPPs a staggering $259 million.He expressed frustration over the government’s failure to honour its commitment to settle the debt.
“If nothing is done by the end of this week, three key power plants will shut down next week,” Dr. Apetorgbor declared. He refrained from naming the affected plants but emphasized their significance to the national power grid. “For now, it’s confidential, but I can assure you these are major plants whose shutdown will have dire consequences.”
Government Figures in Question
Dr. Apetorgbor criticized the government for its lack of clarity and consistency in accounting for power sector debts. He dismissed ongoing reconciliation efforts, asserting that they would not resolve the fundamental issues.
“We are up to date with our numbers and are fully aware of the amounts owed to us. Unfortunately, the government’s figures are unreliable. They have no clear accounting for the power sector, so trusting their data is out of the question,” he said.
Finance Minister’s Optimism Challenged
The warning comes amidst assurances from Finance Minister Dr. Mohammed Amin Adam, who recently announced a renegotiated agreement with Sunon Asogli, one of the IPPs, is part of efforts to stabilize the country’s power supply. The new deal seeks to resolve power disruptions caused by financial disputes between the ECG and Sunon Asogli, which led to a temporary shutdown of its operations.
Dr. Adam touted the agreement as a step toward broader restructuring in the energy sector, aimed at ensuring uninterrupted power supply. “We’ve reached a resolution with Sunon Asogli, and this forms part of a larger effort involving other IPPs. The public will soon see improved stability,” he assured.
However, Dr. Apetorgbor has cast doubt on these claims, challenging the Finance Minister to provide concrete evidence of any agreements reached.“If there is any signed agreement, let the Minister share it with the public. So far, his statements appear to be more political than factual,” he argued.
Impending Crisis
Dr. Apetorgbor warned that the shutdown of three additional power plants would severely impact power generation and distribution across the country, exacerbating the ongoing energy challenges.
“The consequences will be devastating. These are major contributors to the grid. If the government is serious, it must act swiftly to prevent a full-blown crisis,” he said.
With the clock ticking, the energy sector faces significant uncertainty. The IPPs are firm in their stance, and the government’s ability to avert the shutdown remains to be seen.
Story by: Mercy Addai Turkson
