Ghana’s largest Independent Power Producer (IPP), Sunon Asogli Power Ghana Limited, has shut down its 560MW combined circled power plant located in Kpone near Tema over US$259 million debt owed it by the Electricity Company of Ghana (ECG).
An official of the company told this portal that Sunon Asogli was left with no other option than to shut down because all diplomatic efforts to get the debt settled had been unsuccessful.
The company shut down on October 8 but sources say almost a week now, there is no attempt by the government to meet with Asogli to resolve the issue.
Meanwhile, in a statement issued and signed by Qun Yang, Chairman of Sunon Asogli Power Plant, it said it was unable to fund its operations because of ECG’s failure to pay debt owed them.
Despite Sunon Asogli’s decision not to invoice ECG for idle capacity, the debt owed has increased by 23 per cent between January and September 2024, with only 22.6 per cent of the invoices for that period settled through the Cash Waterfall Mechanism.
“Sunon Asogli Power (Ghana) has over the years been very considerate in its dealings with ECG and the government, and, unlike other independent power producers, has not even invoiced ECG for accrued idle capacity charges.
“Despite this, ECG owes Sunon Asogli a net (excluding fuel) receivable amount of US$259 million as of the end of September 2024.
“Our debt has grown by 23% on the net balance, between January 2024 and September 2024 and only 22.6% of the invoices for the period have been paid by ECG from the Cash Waterfall Mechanism,” he stated.
Sunon Asogli expressed deep regret over the impact of the shutdown on the national power supply but emphasised that it had no alternative.
The company further called on the Ministry of Finance to intervene and facilitate a resolution that would allow it to resume operations as soon as possible.
Source: https://energynewsafrica.com