Ghana’s largest independent power generation company, Sunon Asogli Power Ghana has threatened to shut down its 560 MW power plants situated in Kpone near Tema over failure by the Electricity Company of Ghana to settle 800million dollars owed them for power supplied.
The power producer in a letter intercepted by energynewsafrica.com planned to shut down the plant 6pm today Monday, December 4, 2023.
However, assurance from Ghana’s Minister for Finance Ken Ofori to make part payment of $90million this week and next week has forced the power producer to suspend the planned shut down of the power plant.
The company, in a letter addressed to ECG and sighted by energynewsafrica.com, said it has suspended the indefinite shut down of its plant “in view of the intervention and assurance of the Minister of Finance and Minister of State.”
“Kindly confirm our understanding that we shall be paid an interim sum of $60 million in two tranches. The first tranche $30 million to be paid this week and the second tranche in the week of 11th December 2023,” stated, the letter by Qun Yang, Chairman of Sunon Asogli Power Ghana Limited.
The company complained that the accumulating unpaid bills have significantly impacted its operational capacity, making it unsustainable to continue without addressing these financial challenges.
“The accumulating unpaid bills have significantly impacted our operation capacity, making it unsustainable and practically impossible to continue without addressing these financial challenges,” a source close to the company told this portal.
For some time now, independent power generation companies in the West African nation have been lamenting over mounting debts owed them by the southern power distribution company, Electricity Company of Ghana (ECG).
The IPPs, who generate more than 50 percent of Ghana’s generation capacity, are owed over US$2billion.
Ghana’s generation capacity currently stands at 5386MW with peak demand hovering around 3,561 as at May this year.
Source: https://energynewsafrica.com