IPPs give government up to June 30 to pay minimum of 30% of $1.6bn energy debt

The Independent Power Producers (IPPs) have resolved to give the government up to June 30, 2023, to pay a minimum of 30% of the outstanding energy debt.

This was agreed upon at an emergency meeting on May 23, 2023.

It is expected to ease the pressure on members of the Chamber of IPPs, Bulk Consumers and Distributors and enable them to continue operations, while negotiations continue with the Electricity Company of Ghana and government towards finding a long term solution to the payment crisis.

A statement from the Chamber of IPPs to the Finance Minister, Ken Ofori-Atta, sighted by Joy Business, revealed that unless the IPPs receive the payment requested by June 30, 2023, its members will not be in a position to guarantee the continued generation of electricity.

 “Regrettably, we must stress that unless we receive the payment requested by the said date, members of the chamber will not be in a position to guarantee the continued generation of electricity”.

“We trust that Government will treat this request with the urgency it deserves and take the steps necessary to avert such a situation”, the statement signed by the Chairman, Togbe Afede XIV added.

Independent Power Producers threaten to cut power supply by June 30

The Independent Power Producers, Distributors and Bulk Consumers earlier threatened to cut power supply to the national grid by the end of June 2023 if the government fails to settle its debt.

This potentially could create a huge power shortfall as the IPPs control over 65% of the available thermal generation capacity in the country.

Joy Business learnt that as of April 30, 2023, the government owed the IPPs $1.630 billion.