UK: Energy Firms Warned Against Paying Dividends
Energy suppliers have been warned to retain profits rather than pay out returns to shareholders, to ensure firms can weather future price shocks.
Regulator Ofgem said firms “must learn the lessons of the energy crisis”, adding “a return to the practices we saw before isn’t on the table”.
Some 30 suppliers have gone bust since energy prices started to rise in 2021.
Higher wholesale gas prices, driven by Russia’s invasion of Ukraine, made price deals to customers undeliverable.
The biggest supplier to go bust was Bulb, which had 1.6 million customers. It was bailed out by taxpayers to the tune of about £3.2bn and has since been taken over by Octopus Energy.
Households have seen their gas and electricity bills soar, but prices are starting to fall, with the bills for using a typical amount of energy to be £2,074 a year on average.
However, despite a drop of £426 per year, bills are much higher than before the Covid pandemic.
The reduction in wholesale gas prices means domestic suppliers are expected to return to profit after five years of losses.
While companies such as Shell and BP have made record profits in recent years from oil and gas extraction, the two firms – along with other smaller domestic energy suppliers – have been making much less, often inducing losses, for selling that energy to households.
Jonathan Brearley, chief executive of Ofgem, warned firms that he expected “no return to paying out dividends” until suppliers had met the regulator’s financial stability requirements, which are aimed at preventing a repeat of mass company collapses.
In an open letter to the bosses of energy suppliers, Mr Brearley said an energy industry where companies can make “a reasonable profit” was important to “create a sustainable and competitive market for consumers”.
“However, a return to the practices we saw before the energy crisis isn’t on the table – suppliers must reciprocate the support the sector was given by consumers and taxpayers when wholesale prices increased by behaving responsibly as prices fall and profits return,” he added.
The Ofgem boss also warned that this winter, if prices remain as forecast, it is likely “a large group of customers will struggle to pay their bills, so the sector will need to be fully focussed on how best to support customers in financial distress”.
‘Firms need to play their part’
Since 2019, Ofgem has set a price cap on energy bills, which is the maximum price that suppliers can charge customers per unit of gas and electricity. It applies to households on variable or default tariffs in England, Wales and Scotland.
After the price cap soared, the government stepped in with the Energy Price Guarantee which limited annual bills to £2,500, but that has since ended now the cap is £2,074.
Last week, Chancellor Jeremy Hunt met with several regulators, including Ofgem and told them they needed to “work at pace” to ensure businesses reflected any falling costs in the prices they charged customers.
Mr Brearley said firms needed to “play their part by making sure they’re financially robust” in order to “absorb potential losses”.
He said while he was “observing some good practice” the regulator was also finding evidence that some suppliers may have “breached” pricing rules. “We are investigating further and will take action if we find abuse,” Mr Brearley warned.
Source: BBC
Ghana: NPA Shuts Down 16 Illegal Fuel Stations In Upper East Region
The National Petroleum Authority (NPA), a regulator of the downstream petroleum industry, has clamped down on sixteen illegal reseller outlets popularly known as ‘gao gao’ in the Upper East Region.
The region had observed an alarming proliferation of these reseller outlets in areas such as Pelungu, Duusi, Gbane Shiega, Tongo, Gaare, Chuchuliga, Bolga Soe, Sirigu, Bongo, Zonno, Namolga, Sakote, Zorko and Kpale, selling petroleum products without authorisation from the NPA.
The Upper East Regional Manager of NPA, Mr Bashiru Natogma, disclosed this to the media during an interview, and he said the NPA Act prohibits any person, other than one licensed under the Act, from having a petroleum product in quantities unreasonably more than that person’s immediate requirement.
He said those outlets lacked the necessary safety measures and infrastructure to handle and store petroleum products safely.
The Regional Manager explained that “some of them often operate near public spaces, increasing the risk of accidents and fire outbreaks. The absence of proper or adequate fire prevention systems such as firefighting equipment and trained personnel further exacerbates these dangers.”
Mr Natogma said the operation was to uphold the quality, pricing and safety of retailing petroleum products.
He advised the public about the risk associated with purchasing petroleum products from unauthorised reseller outlets.
He encouraged the public to purchase petroleum products from authorised reseller outlets and fuel stations.
The Regional Boss further cautioned Oil Marketing Companies (OMCs) engaging in this illegal act to desist from it and seek proper guidance to legally operate reseller outlets.
He warned that OMCs caught supplying petroleum products to these unauthorised reseller outlets would be severely sanctioned by the regulator.
Source: https://energynewsafrica.com
Ghana: ECG Announces Three Months ‘Operation Zero’ Revenue Mobilisation Exercise
Ghana’s southern power distribution company, Electricity Company of Ghana (ECG) will, from July 11, 2023, embark on what it describes as ‘Operation Zero’ to recover payment for outstanding electricity bills.
The exercise is expected to last for about three months.
In a statement issued Tuesday, July 4, 2023, the power distributor said ‘Operation Zero” would be assisted by security agencies who would apprehend and prosecute customers who would attempt to interfere with the exercise.
The ECG said its staff would take the opportunity to visit all households to capture consumers who are not in their database and bill them instantly via the ECG digital customer platform.
“During this special exercise, ECG will grant a moratorium to all who are consuming electricity without paying for it to allow them to visit their respective ECG offices for immediate regularisation of their supply. ECG pleads with customers who have not yet received their bills to pay on account to be credited accordingly.”
Given the exercise, ECG said its regional and district offices would operate with a lean staff pool that would provide essential services to customers to enable total participation by top management and staff.
Source: https://energynewsafrica.com
Ghana: Star Oil, Petrosol Among Top Ten OMCs In Ghana
Competition among oil marketing companies in the Republic of Ghana is becoming keener with OMCs, which, hitherto, recorded low sales in terms of volumes, are now trumping ‘big’ players.
While existing Oil Marketing Companies (OMCs) have been introducing initiatives and incentives geared towards increasing their market shares and also maintaining the top spot, others especially indigenous OMCs, have made inroads by increasing their market shares and volumes, consequently, pushing them to be among the top ten OMCs in the country.
Checks by this portal revealed that there are about 197 Oil Marketing Companies in the West African nation.
Previously, GOIL, Shell and TotalEnergies used to be the top three oil marketing companies in the West African nation, but data from the petroleum downstream regulator, National Petroleum Authority, for the first quarter of 2023 shows that Star Oil has risen to occupy the second spot after selling 40.4 million litres, 32.1 million and 36.1 million litres of petrol and diesel in January, February and March respectively this year.
Star Oil followed GOIL, which sold 75.01 million litres, 64.7 million litres and 64.2 million litres respectively while Shell occupied the third position after selling 38.9 million litres, 28.5 million litres and 35.4 million litres of petrol and diesel.
TotalEnergies placed fourth after selling 31.2 million litres, 23.2 million litres and 31.2 litres in January, February and March this year.
According to the data on the NPA’s website, in January, Benab sold 12.9 million litres of petrol and diesel, thus, placing fifth position while Frimps Oil sold 10.5 million litres to place sixth.
Zen Petroleum, one of the indigenous oil marketing companies, sold 10.3 million litres, placing seventh while Petrosol Ghana Limited, another indigenous OMC, sold 8.9 litres to placing eighth.
Dukes sold 8.64 million litres to Nineth while Allied secured the tenth position after selling 7.13 million litres of petrol and diesel.
In February, Benab sold 11.05 million litres of petrol and diesel, thus, placing fifth position while Dukes sold 8.82 million litres to place sixth.
Zen Petroleum, one of the indigenous oil marketing companies, sold 8.60 million litres, placing seventh while Frimps, another indigenous OMC, sold 8.16 litres to place eighth.
Petrosol Ghana Limited sold 7.47 million litres to place nineth while Allied secured the tenth position after selling 5.71 million litres of petrol and diesel.
In March Zen Petroleum, sold 13.10 million litres of petrol and diesel, thus, placing fifth position while Benab sold 12.9 million litres to place sixth.
Petrosol, one of the indigenous oil marketing companies, sold 9.50 million litres, placing seventh while Allied, another indigenous OMC, sold 9.47 litres to place eighth.
Frimps sold 9.2 million litres to place nineth while Dukes secured the tenth position after selling 8.99 million litres of petrol and diesel.
click on the document below to have access to the data.
OMC
Source: https://energynewsafrica.com
South Africa: SA, Germany Sign Declaration Of Intent For Green Hydrogen
South Africa’s Minister in the Presidency responsible for Electricity Dr. Kgosientsho Ramokgopa and German Vice Chancellor Robert Habeck have signed a joint declaration of intent to establish the South African German Hydrogen Task Force.
The green hydrogen economy has been billed as a new frontier for clean energy as it emits low carbon emissions with a global potential of about $300 billion in exports.
The country holds approximately 80% of the world’s platinum group metals (PGMs) and 40% of the world’s platinum and palladium supplies which are key components in the production of hydrogen – making South Africa potentially a key player in the future of the market.
The cooperation between the two countries aims to link South African developers in the Green Hydrogen market with off takers in Germany looking at additional funding for projects and cooperation in creating projects in South Africa that are commercially viable that can meet international green hydrogen demand and supply.
Business to business opportunities between South African companies and their German counterparts will also be created through the task force.
The key outputs of the declaration are the creation of the task force which will look at how the green hydrogen market will be created, how it will develop and grow.
Government has already drawn up plans for a Hydrogen Valley which is expected to run from Limpopo, through Johannesburg to Durban.
The valley will establish opportunities for projects which will kick-start hydrogen initiatives in hubs with the aim of boosting economic growth and job creation.
Ghana: Ghana Gas CEO Wins Transformational Leader Of The Year Award At Think Energy SDG Awards
The Chief Executive Officer of Ghana National Gas Limited Company, Dr. Ben K.D. Asante won the Transformational Leader of the Year Award at the maiden Think Energy SDG Awards Night last Friday, June 30, held in Accra.
The award ceremony, which attracted industry players, the business community, academia, journalists and many more, is geared towards new and cleaner energy without transforming the training in energy education.
Kwame Nkrumah University of Science and Technology (KNUST) was adjudged winner of the SDGS Teaching and Learning Award after beating competition from Accra Technical University and Centre for Women and Food Security-Ghana
The Ghana Gas Chief Executive Officer, who has played a key role in Ghana’s energy sector with the Atuabo Gas Processing Plant, was honoured for his transformational leadership of the gas company.
Speaking at the event, Dr Ben Asante underscored the energy transition from fossil fuel to cleaner energy.
“In our energy portfolio, the energy transition will be the change from our current portfolio of energy sources, which is dominated mostly by carbon dioxide and methane, fossil-fuel to cleaner forms of energy to be dominated by renewable energy.
“And our boundary condition will be a balance of certainly environment responsiveness and economic and social impact,” he stated.
The Oil and Gas expert was of the view that the transition from fossil fuel to cleaner energy as a country should be graduated and driven by fuel type and location.
A novel ceremony, the awards are aimed at celebrating excellence, innovation and the impact of the respective individuals and organisations on clean energy, energy efficiency and energy access. Again, the Think Energy SDGs Awards is a prestigious award designed to celebrate and honour corporate and academic institutions working together to achieve.
The event was put together by Think Energy Awards and powered by the African Global Response Energy Environment (AGREE) Limited, with support from the SDG Advisory Unit of the Office of the President, the Ministry of Energy and Ghana Gas Limited Company.
Second Lady Samira Bawumia was adjudged the Most Influential SDGs Leader in Africa. Energy Digest took home the SDGs Communication Award, former CEO of GNPC, Dr Kofi Koduah Sarpong, was given the SDGs Lifetime Award while Asaase Radio’s Emmanuel Aboagye-Wiafe picked the Energy Media Personality of the Year Award.
Source: https://energynewsafrica.com
The event was put together by Think Energy Awards and powered by the African Global Response Energy Environment (AGREE) Limited, with support from the SDG Advisory Unit of the Office of the President, the Ministry of Energy and Ghana Gas Limited Company.
Second Lady Samira Bawumia was adjudged the Most Influential SDGs Leader in Africa. Energy Digest took home the SDGs Communication Award, former CEO of GNPC, Dr Kofi Koduah Sarpong, was given the SDGs Lifetime Award while Asaase Radio’s Emmanuel Aboagye-Wiafe picked the Energy Media Personality of the Year Award.
Source: https://energynewsafrica.com Ghana: Calls For Scrapping Of BDCs Are Short-sighted—Dr Patrick Ofori
Chief Executive Officer (CEO) of the Chamber of Bulk Oil Distributors (CBOD), Dr Patrick Ofori, has described calls by a section of Ghanaians that the institution has outlived its usefulness so it is scrapped as thinking of short-sightedness.
The Bulk Oil Distribution Companies were created during the John Agyekum Kufuor administration when the country experienced fuel shortages as a result of industrial actions by the staff of Tema Oil Refinery (TOR).
Speaking exclusively to energynewsafrica.com recently, Dr Ofori cited the lack of liberalisation in countries like Nigeria, resulting in occasional fuel shortages which are affecting their rapid socioeconomic development.
Dr Ofori argued that people saying the institution has outlived its usefulness is addicted to subsidies and do not want the private sector which is the engine of economic growth to speed Ghana’s development.
According to him, the BDCs who are private sector operators in Ghana contribute about 70 to 75 per cent of its overall haulage of petroleum products, and this has stopped the perennial shortages the country experienced in the past.
“So if they have not taken these initiatives to build that, you can image the cues and others. We look at Nigerian where the NNPC Limited tries to cover everything and that demonstrated the fuel shortages that they encountered because once it’s centred around one institution, if there are any hiccups, it becomes a problem for the system the grid,” he illustrated.
Touching on the number of employment the BDCs have offered to Ghanaians, he said that should they close the fuel tank farms, trading and other affiliate services, neither Tema Oil Refinery (TOR) nor BOST can offer these thousands of people jobs, which would affect the already suffering health of Ghana’s economy.
Dr Ofori also asked whether the government could have carried the high losses that hit the sector recently, arguing that the BDCs helped by taking that responsibility.
According to him, the government used monies saved from such occurrences to invest in other sectors of the country to speed up socio-economic growth.
Sadly, he observed that no bank or insurance company in Ghana has the financial muscle to help operators in the sector to import petroleum products into the country, saying that it spends over US$100 million to bring in the products just for two vessels, which is equivalent to the threshold or obligation limit for the Ghanaian banks to operate, so it means a lot of investment is need to build more capital to trigger growth in the petroleum sector.
He said even with the operations of the BDCs, IOTCs play alongside the petroleum distribution chain and, therefore, stressed the need for stakeholders and government to build capital to help the sector in the face of changes to meet international standards practices.
Dr Ofori urged the players in the industry not to downplay the role of any government in the sector, saying the government has taken a key risk element in the business and needs to be lauded.
Source: https://energynewsafrica.com
Ghana: BOST MD Adjudged Africa’s Most Respected CEO In Mauritius
The Managing Director of BOST, Ghana’s strategic petroleum stock keeping company, Mr Edwin Alfred Provencal, was adjudged Africa’s Most Respected CEO in the Petroleum Category (Storage and Distribution category) for the year 2022 by the Business Executive and the Economic Development Board of Mauritius.
The event, which was held in Balaclava in Mauritius also recognised the Managing Director of Air Tanzania Company Limited, Mr. Ladislaus Matindi, as Africa’s Most Respected CEO 2022 for the Air Transport category.
Africa’s Most Respected CEOs platform recognises companies and corporate leaders who go the extra mile in enhancing the fortunes of the continent of Africa, which is on a forward march towards enhancing the lives of its 1.4 billion population.
Speaking in a panel discussion, Mr. Ladislaus Matindi opined that, to take Africa to the next level and to make the dream of the Africa Continental Free Trade Area (AFCFTA) a reality, corporate leaders in both the public and private sectors of Africa should foremost admit the unique situation of the continent and tailor solutions to the challenges both existing and emergent, to ensure that they create a better future for the people (both present and yet unborn).
Commenting on the award, Mr. Provencal proudly dedicated the award to the Board, Management and Staff of BOST, who, he said, are the pillars behind the massive turnaround of the company in the last couple of years.
He thanked the President of the Republic of Ghana, Nana Addo Dankwa Akufo-Addo, for the opportunity to serve and the confidence reposed in him.
This recognition of BOST and its MD comes as the fourteenth over the past ten months reflecting the volume of work done at the company and the massive transformation, Mr. Provencal is leading the formidable State-Owned Enterprise.
In the citation, the MD of BOST was praised for reviving the company from ten years of losses into the profit zone and also bringing as much as 97 per cent of the assets of the company to revenue-earning status as against the past years of dilapidation and lack of activity.
This is the way to go if AFCFTA is to impact the lives of the people of Africa to break the long chains of poverty, ignorance and disease.
Mr. Provencal noted that for Africa to see massive progress, the public sector must be up and doing and share that positive energy with the private sector.
“Indeed, there are challenges, but these should not halt the progress of the continent and its people,”, he added.
Dr Claudius Williams-Tucker, the Country Director of Trans-Global Travel and Logistics of Sierra Leone was also celebrated at the event for his wonderful contributions towards the gradual changing of the fortunes of the continent.
In the construction category, Core Construction Limited and its Chief Executive Officer, Mr. Frank Lartey of Ghana were also recognised at the event.
Africa’s Most Respected CEO Awards is targeted at honouring sterling leadership in the private and public sectors of Africa as the continent gears up to take full advantage of the AFCFTA to better the lives of the people.
Source: https://energynewsafrica.com
Commenting on the award, Mr. Provencal proudly dedicated the award to the Board, Management and Staff of BOST, who, he said, are the pillars behind the massive turnaround of the company in the last couple of years.
He thanked the President of the Republic of Ghana, Nana Addo Dankwa Akufo-Addo, for the opportunity to serve and the confidence reposed in him.
This recognition of BOST and its MD comes as the fourteenth over the past ten months reflecting the volume of work done at the company and the massive transformation, Mr. Provencal is leading the formidable State-Owned Enterprise.
In the citation, the MD of BOST was praised for reviving the company from ten years of losses into the profit zone and also bringing as much as 97 per cent of the assets of the company to revenue-earning status as against the past years of dilapidation and lack of activity.
This is the way to go if AFCFTA is to impact the lives of the people of Africa to break the long chains of poverty, ignorance and disease.
Mr. Provencal noted that for Africa to see massive progress, the public sector must be up and doing and share that positive energy with the private sector.
“Indeed, there are challenges, but these should not halt the progress of the continent and its people,”, he added.
Dr Claudius Williams-Tucker, the Country Director of Trans-Global Travel and Logistics of Sierra Leone was also celebrated at the event for his wonderful contributions towards the gradual changing of the fortunes of the continent.
In the construction category, Core Construction Limited and its Chief Executive Officer, Mr. Frank Lartey of Ghana were also recognised at the event.
Africa’s Most Respected CEO Awards is targeted at honouring sterling leadership in the private and public sectors of Africa as the continent gears up to take full advantage of the AFCFTA to better the lives of the people.
Source: https://energynewsafrica.com Liberia: Capacity Building Is Essential To Africa’s Energy Sector—Says LEC Boss
The Head of the Liberia Electricity Corporation (LEC), Monie Captan has said that there is a strong need for Africa to “strengthen capacity for project implementation delivery of energy stakeholders,” so as to achieve the objective of the 25th edition of the Africa Energy Forum in 2023.
The Forum is an important platform for African countries to come together and discuss ways to improve the sectors by creating capacity building for its people.
Captan, who spoke recently at the African Utilities Roundtable Forum in Kenya, Nairobi noted that capacity building is essential for the effective development and delivery of projects, “particularly in the energy industry, where there are several complicated difficulties.”
He added that it was also important that African countries work together and share knowledge as well as resources to achieve their energy goals.
“The Africa Energy Forum provides an opportunity for African countries to collaborate and learn from each other’s experiences,” Captan said. “It is also important to invest in renewable energy sources such as solar, wind, and hydropower.”
Captan, however, observed that most African utilities do not have cost-reflective tariffs, which he says hampers commercial viability, economic growth, and development.
According to him, a cost-reflective tariff is one that reflects the actual cost of supplying electricity, removing the reliance on Government subsidies to cover the variance between the current tariff and the supply of electricity.
According to Captan, there is a compelling need for energy experts and stakeholders on the Continent to develop a strategic framework that will address challenges relative to capacity building, project implementation delivery, and procurement processes.
Meanwhile, the Forum, which started from June 20–23, 2023, was aimed at uniting governments, utilities, and regulators with development finance institutions, commercial banks, power developers, and technology providers, among others.
Over the last 24 years, the African Utilities Roundtable Forum has earned a reputation as the most meaningful gathering of decision-makers in African energy to form partnerships, identify opportunities, and move the industry forward.
The Africa’s Energy Roundtable Forum handpicks the most credible organizations in the sector, delivering an intensive networking experience.
The 2023 topic and themes discussed were: Insights from energy ministers and heads of utilities into project pipelines; Increasing pace and scale for Africa’s renewable energy projects; and the Growing Role of Africa’s Gas within today’s Geo-Political context.
Followed by breaking down barriers to energy transition in mining, capital flows, and risk mitigation in today’s market, financing an African ‘transition, Africa’s path of becoming a global hydrogen powerhouse, and building regional power markets as well as electricity trade between countries.
Other topics discussed were new streams for 2023, including mining, critical minerals, and energy. The forum was attended by 2,000 plus Industry Stakeholders, 300 plus Expert Speakers in a multi-streamed agenda, and 150 plus Sponsors and exhibitors.
It was held under the patronage of cabinet secretary Davis Chirchir, Kenya Minister of Energy and Petroleum.
Source: Africa Energy Portal
Kenya: Fuel Prices Go Up As VAT Rates Double
Kenya revised fuel prices upward from July 1, 2023, after the East African nation increased the Value Added Tax on fuel from eight per cent to 16 per cent.
The cost of petrol has gone up by KShs13.49 per litre while diesel went up by KShs12.39 per litre with the kerosene price going up by KShs11.96 per litre.
In Nairobi, the capital of Kenya, petrol and diesel are sold at KShs195.53 per litre and KShs179.67 per litre respectively while kerosene is sold at KShs173.44 per litre.
In Mombasa, super petrol is sold at KSh192.48, diesel at KSh176.63, while kerosene is selling at KSh170.40 per litre.
At the same time, major cities, including Nakuru and Kisumu, registered an increase in the price of petroleum products per litre.
In Nakuru, a litre of super petrol cost KSh194.60, diesel at KSh179.14 while kerosene is sold at KSh172.93.
Meanwhile, in Kisumu, a litre of super petrol is sold at Ksh195.34, diesel at KSh179.89 and kerosene at KSh173.68.
In other areas such as Laisamis, Merille and Korr in Marsabit County, the prices for super petrol hit over Ksh200 per litre.
Previously, petrol was sold at KShs182.04 per, diesel at KShs167.28 per litre and kerosene was sold at KShs161.48 per litre.
The new rates would be in place until July 14 when the energy regulator, Energy and Petroleum Regulatory Authority (EPRA), would hold a scheduled monthly meeting to review the prices.
EPRA released the new prices minutes after the High Court suspended the implementation of the Act, days after President William Ruto assented to it, paving the way for the doubling of VAT on fuel from 8.0 per cent.
“Under the Finance Act, 2023, VAT on super petrol, diesel and kerosene has been revised from 8 per cent to 16 per cent effective 1st July 2023. Accordingly, EPRA has recalculated the maximum pump prices that will be in force from 1st to 14th July 2023, taking into account VAT at 16 per cent,” the energy regulator said Friday.
Source: https://energynewsafrica.com
Ghana: Breaking News: Load Shedding Averted
The Independent Power Generators in the Republic of Ghana have rescinded their decision to shut down their power plants after the southern power distribution company, Electricity Company of Ghana settled part of the US$1.7 billion debt owed them during an emergency meeting Friday, June 30, 2023.
The IPPs demanded a 30 per cent payment of an outstanding US$1.7billion debt owed them by the power distributor.
The group resolved to shut down all their power plants which account for about 50 per cent of power generated on the national grid effective July 1,2023.
However, at an emergency meeting with some government officials on Friday, energynewsafrica.com understands ECG made some payment at the last hour to the IPPs although it was less the 30% demanded.
The group, this portal understands have accepted the offer by ECG and have therefore decided to rescind its decision.
Details soon
Https://energynewsfrica.com
Ghana: Mahama Pleads With IPP Chamber To Rescind Its Decision To Shutdown Power Plants
Ghana’s former President, John Dramani Mahama, is pleading with the Independent Power Producers (IPPs) in the West African nation to reconsider their decision to shut down their plants due to the government’s outstanding debt.
According to him, the country’s economy would be impacted negatively if they go ahead with their decision.
The Independent Power Generators, Ghana, formerly Chamber of Independent Power Producers, Bulk Distributors and Consumers (CiPDiB), on Thursday, June 29, directed its members to start the process to cut power supply to the national grid from July 1.
The members comprising Sunon Asogli, Cenpower Generations, Karpowership, AKSA, Energy Power, Amandi Energy, Trojan Power Limited, Meinergy, and CENIT Energy served notice to the government to pay about 30 per cent of the $1.73 billion outstanding debts owed them by June 30, 2023.
The group, on June 21, issued a reminder to Finance Minister Ken Ofori-Atta but that reminder appeared to also fall on deaf ears.
According to the IPPs, the debt has impacted negatively on their working capital and prevented them from acquiring some raw materials.
In a Facebook post on June 30, the former President stated that such a move would have severe consequences on Ghana’s economy and negatively impact the lives of numerous Ghanaian families.
“As a concerned citizen, I would like to make a plea to the Chamber of Independent Power Producers (IPPs) to reconsider their decision to shut down their plants effective July 1, 2023.
“If the IPPs, who account for almost half of the country’s total power generation and over two-thirds of Ghana’s thermal power, go through with this plan, it will have a disastrous impact on Ghana’s economy and negatively affect the lives and livelihoods of countless Ghanaian families.”
Mr Mahama also called on the government to take action and resolve the situation.
“I strongly urge the government to take immediate action and initiate discussions with the IPPs to find a sustainable solution to the impending power crisis.
“These discussions must begin without delay and be given the highest priority.”
It is not clear whether they would heed the appeal by Mr John Dramani Mahama considering his statesmanship.
However, checks by energynewsafrica.com indicate that the IPPs are currently holding a crunch meeting and are likely to communicate their decision to the public before tomorrow.
.
Source: https://energynewsafrica.com
Shell’s Renewables Boss To Leave After CEO Strategy Shift
Shell’s head of renewable generation Thomas Brostrom is leaving the energy giant, a spokesperson said on Friday, weeks after CEO Wael Sawan scaled back the company’s energy transition plans.
“Thomas Brostrøm has elected to leave Shell to pursue an external opportunity,” the company said. He will be succeeded by Greg Joiner, currently VP Shell Energy Australia.
Source: Reuters
Biden Rejects Call To End Oil And Gas Drilling On Federal Lands
The Biden Administration has rejected a petition from hundreds of environmental organizations to consider rulemaking with which to end oil and gas production on public lands by 2035.
The Center for Biological Diversity and more than 360 other U.S. climate and conservation groups petitioned in early 2022 the Biden Administration requesting that the Secretary of the Interior promulgate regulations establishing a maximum production rate and a phasedown of existing onshore and offshore oil and gas production from public lands and waters.
The Principal Deputy Assistant Secretary of Land and Mineral Management at the Department of the Interior, Laura Daniel-Davis, said that the Administration rejects the petition and it couldn’t dedicate its limited resources to establishing a phase-down program.
“This Administration shares your concerns regarding the urgency of the climate crisis and is directing its limited resources in an effort to address them,” Daniel-Davis wrote in a letter to the organizations.
The campaigners responded to the rejection of their petition, with Taylor McKinnon of the Center for Biological Diversity saying, “To claim that the Biden administration doesn’t have the resources to take real climate action on federal fossil fuels is vacuous and beyond hypocritical.”
“This is the definition of lip service. The administration acknowledges the urgency to address climate change and meanwhile avoids every opportunity to take meaningful action on the fossil fuels under its control,” McKinnon said.
Hallie Templeton, legal director for Friends of the Earth, added, “The U.S. and the world need bold action to phase out fossil fuels. We will keep fighting and holding federal officials accountable.”
The Biden Administration continues to pursue a clean energy future for America, but it has recently angered environmentalists with approvals of oil and gas projects.
One of the latest such approvals was the Administration giving the green light to ConocoPhillips to develop the Willow oil project in the National Petroleum Reserve-Alaska (NPR-A), allowing three out of five proposed drill sites.
Source: Oilprice.com