Dumsor Looms as US$ 1.5 billion debt to IPPs pop up

The Independent Power Producers (IPPs) who have a combined electricity supply capacity of about 2,600 Megawatts (MW) have warned of potentially renewed power cuts (dumsor) because the government, through the Electricity Company of Ghana and the sacked Power Distribution Services (PDS) owe them a staggering US4 1.5 billion.

A statement issued by the Chamber of Independent Power Producers, Distributors and Bulk Consumers (CIPDiB) revealed that the debt poses  “serious threat” to the energy sector.

“The cumulative outstanding debt position of the GoG/ECG to IPPs alone has escalated to about USD$1.5 Billion! The CIPDiB is once again compelled to ask that payment of the obligations of GoG/ECG be made as a matter of urgency,” the Chamber said in a statement issued on Monday.

The IPPs’  warning is a worrying one, given the fact that the produce approximately 60 per cent of the total generation capacity of the entire power sector.

“We would urge the Government of Ghana and its agencies, including ECG and MiDA, as well as the MCC to co-operate to ensure that decisions are taken that enable Ghanaians to have access, affordably, to reliable energy supply,” the statement added. This latest warning from the IPPs is coming close in the heels of the termination of a fraudulent management contract between ECG and PDS, where the government has been directly fingered for causing the mess in the contract that would have seen a significant improvement in power supply for Ghana.

LEAVE A REPLY

Please enter your comment!
Please enter your name here