The Electricity Company of Ghana (ECG), a southern power distribution company in the Republic of Ghana, has shared about US$43 million among Independent Power Generators to settle part of its outstanding debts.
ECG owed the Independent Power Generators more than US$2 billion as of May 2023.
The huge debts which had become unsustainable compelled the Independent Power Generators to threaten to shut down their power plants since it was crippling their operations.
However, the group rescinded its decision after the power distribution company committed to settle the debts through a payment plan.
According to energynewsafrica.com’s sources, ECG shared about US$43 million among all the IPPs numbering about nine.
A report by Citinewsroom quoted the External Communications Manager for the ECG, Leila Abubakari saying that the necessary measures have been put in place to ensure the arrears owed to the IPPs are eventually cleared.
“We have promised them that the current bills that they are raising for us will be paid because we have found a way of increasing our revenue through our digitalisation process, and we are now able to collect more than we were able to collect. And so, the bills that are raised for us every month; we are going to honour those while we have discussions about how to clear the debt that accrued over the past few years now.
“That is the stage that we are in right now, but that is a high-level conversation between ECG, the Ministry of Energy, the Ministry of Finance and then the IPPs but so far, all is calm, and we are still very much development partnership, and they are doing their bit and then we are also paying them of all the bills that they are raising for us.”
Source: https://energynewsafrica.com