IPPs Issue Reminder To Cut Power Supply To National Grid By July 1
Load shedding or intermittent power supply beckons as the Independent Power Producers (IPPs) have reminded Finance Minister Ken Ofori-Atta, of their intention to cut power supply to the national grid from July 1, 2023.
According to the power producers, their calls on the government to pay the IPPs an interim payment of 30% of outstanding arrears of each IPP by June 20, 2023, have not been addressed.
“We refer to our letters dated March 27, 2023, and May 25, 2023, with reference number IPGG/1/2023 and IPGG/2/2023 addressed to the Minister [Finance] by which the IPP Chamber stressed the urgent necessity for the government to prioritise payment of the outstanding arrears owed to members of the IPP Chamber to enable the IPPs to cover critical operational costs required to continue operations and pay overdue debt service”, it disclosed in a statement to the Finance Minister.
“We had indicated in our letters that IPPs needed to receive an interim payment of 30% of the outstanding arrears of each IPP by June 20 2023. Unfortunately, we have not seen any good faith indication or commitment of such impending payment from ECG/Government as of today, June 21, 2023, despite the Electricity Company of Ghana’s recent collection efforts, as reported in the media, which yielded circa ¢3.1 billion,” they explained.
“The members of the IPP chamber are now at a point where they are unable to persuade their creditors, contractors, and other key stakeholders to further defer payments owed to them and to continue operations,” the IPPs added.
The chamber called on the government, the Electricity Company of Ghana (ECG) and other stakeholders to treat this reminder with the urgency it deserves and take the steps necessary to forestall any dire consequences.
The statement was issued after an emergency meeting on Tuesday, June 20, 2023.