Gov’t to meet IPPs today over $2.3bn debt

Story: Business Desk

The Chamber of Independent Power Producers Ghana (IPPs) is expected to have an emergency meeting today over a $2 billion debt owed its members.

The IPPs earlier rescinded their decision to shut down their power plants that supply the national grid following what they believed were productive discussions with the Electricity Company of Ghana to settle the debt.

Despite assurances and the continuation of power production in July after the June 30 deadline, it appears that the agreements made during the engagements have been breached, much to the disappointment of the IPPs.

The Executive Director of the Africa Centre for Energy Policy (ACEP), Ben Boakye urged the government to reach an amicable resolution with the power producers to avert any power cuts. 

“I hope that the meeting will yield results and come up with a plan to avert some of the problems in the energy sector because we cannot continue to generate so much waste that will warrant interruption in power supply and I hope that there will be a solution to our debt situation.”

Players in the energy sector have been expressing fears of a looming power crisis should the IPPs carry cut supply over the debt which keeps rising each passing day.

The IPPs which control about 50 percent of the country’s generation mix had highlighted that the debt has hindered their access to working capital, preventing them from financing crucial inputs such as chemicals for water treatment in thermal generators and other supplies, many of which are priced in foreign currency, primarily the US dollar.

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