Weeks after the Independent Power Producers (IPPs) threatened to shut down production to demand payment of their debt, it has emerged that government is yet to commence any payment negotiation.
This is contrary to earlier indications by the government two weeks ago, that it has begun talks with the IPPs for a possible restructuring of the energy sector debt.
A couple of weeks ago, the Managing Director of the Electricity Company of Ghana, Samuel Dubik Mahama, said that his outfit is leading talks with the Independent Power Producers for a monthly payment plan to avoid a possible shutdown of the power plants.
But reacting to this, Chief Executive Officer of the Independent Power Producers, Elikplim Apetorgbor said, apart from hearing about the intended negotiation in the media, the government is yet to reach out to them.
“We’ve not had any negotiation in that regard. None of the IPPs has been engaged in any conversation or discussion regarding that proposal.
“Besides, if they talk about monthly payments, our bills have to be settled within a credit period. So, we expect a periodic payment as at when the minister collects revenues to be disbursed but that has not been the case over the period,” he said.
The IPPs maintained that they will shut down their plants if the government fails to initiate payment in the next few days.
“What it means is that we cannot wait any longer for some of this rhetoric. We are in a very critical situation so, I think the earlier the better. If there is no remedial action, I cannot guarantee lights after 30th June,” Mr Apetorgbor said.
On June 18, during a minister’s press briefing on Ghana’s IMF programme and growth agenda, Finance Minister, Ken Ofori Atta, said that the energy sector will undergo some vigorous reforms to save the sector from collapsing,
This comes after the sector’s legacy debt reached about 2 billion US dollars as of the end of May 2023, and an estimated shortfall of 5.9 billion dollars between 2023 and 2025, due to the current conditions of State Owned Enterprises and Independent Power Producers in the value chain.
According to the Minister, these reforms will sustainably reduce losses in the energy sector and pay off the debt which threatens the sector.