The Chamber of Independent Power Producers Ghana (IPPs) has suspended its planned shutdown of plants powering the national grid despite debts owed by government.
This follows what the Chamber describes as fruitful engagements with the Electricity of Ghana (ECG).
To this end, the IPPs have agreed to keep operating their power plants after July 1, 2023.
“As part of the understanding reached, all the IPPs have received an offer of payments from ECG to enable them operate in the interim thereby providing the Government of Ghana (GOG) and ECG the needed grace period to address the outstanding arrears in the energy sector and to meet their contractual obligations”, the IPPs said in a statement issued on Friday night.
Players in the energy sector expressed fears of a looming power crisis should the IPPs carry out their threats to cut supply to the national grid over the almost US$2 billion outstanding arrears.
The IPPs which control about 50 percent of the country’s generation mix had highlighted that this 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.
They were thus demanding a 30 percent interim payment before the close of Friday June 30, 2023.
In fact, the Chamber had in an email directed its members comprising Sunon Asogli, Cenpower, Karpowpership, AKSA, Twin City Energy and CENIT not to declare available power capacity to the system operator from July 1-8, 2023.
But the Chairman of the IPPs stated that “we are pleased to have reached an interim understanding with ECG, which enables us to continue our operations for the benefit of the good people of Ghana. We recognize the importance of our operations to the nation, and all the IPPs jointly remain committed to Ghana in delivering reliable power to the country. We also appreciate the support and collaboration we have received from the general public and all well-meaning Ghanaians throughout this process.”