After productive conversations with the Electricity Company of Ghana (ECG), the Chamber of Independent Power Producers of Ghana (IPPG) has decided to postpone the planned closure of power plants.
If the government does not pay the Chamber’s members 30 percent of the 1.73 billion dollars that are owed to them, the Chamber has instructed its members in a memo to shut down their plants beginning on July 1 and continuing through July 8.
IPPs agree to suspend shutdown after engagement with ECG
However, as stated in a statement that was made public by the chamber on Friday, June 30, the independent power producers (IPPs) have consented to continue operating their power plants after July 1, 2023.
As part of the agreement that was reached, ECG has extended a payment offer to all of the independent power producers (IPPs). This will allow the IPPs to continue operating while the government of Ghana and ECG work to resolve the outstanding arrears in the energy sector and meet their contractual obligations.
The independent power producers (IPPs) are hopeful that the agreement that was made will help generate the intended effect of providing a lasting settlement to the debt that is owed by the energy industry. If this does not occur, the IPPs will be left with no choice but to revert to their prior decision to shut down without providing any additional notice.
In their statement announcing the decision, the IPPs expressed their gratitude to the Chairman and Ranking Member of the Parliamentary Select Committee on Mines and Energy, as well as the members of the committee, for their prompt assistance in ensuring a constructive engagement.
“The IPPs would also like to express their appreciation to their respective lenders and shareholders for their support and involvement in these discussions for a resolution of the outstanding debt issues.”
The Chairman of the Independent Power Producers (IPPs) made the following statement: “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 are aware of the significance of our activities to the country, and the independent power producers (IPPs) all maintain their dedication to Ghana in terms of providing the country with power that can be relied upon. Throughout this entire procedure, we also wish to express our gratitude to the general public and to all Ghanaians who acted out of goodwill and offered us their support and assistance.
The independent power producers (IPPs) have stated that they will each continue to actively engage with the government and ECG in order to address the unresolved financial concerns and that they will also work on a long-term solution to address the problems that now exist.
The Chamber is sure that through continued cooperation, a solution that is favourable to all parties can be found. This will allow the Chamber to continue making the significant contribution that it has been making to the growth and stability of the energy sector in the country as well as to the economy.