ECG Ghana Engages IPPs to Prevent Power Outages

  • The Electricity Company of Ghana (ECG) has assured the public of uninterrupted power supply following successful negotiations with Independent Power Producers.
  • While ECG has pledged consistent power delivery, industry stakeholders are urging the government to establish a more sustainable financial framework to prevent similar disputes in the future.

The Electricity Company of Ghana (ECG) has assured the public of uninterrupted power supply following successful negotiations with Independent Power Producers (IPPs) over outstanding debts.

This reassurance comes in response to threats from IPPs to shut down multiple power plants due to unpaid arrears, raising fears of a return to the dreaded power outages era, known as dumsor.

ECG’s External Communications Manager, Nii Ayiku, confirmed the negotiations had averted the potential crisis.

“We are actively engaging with the IPPs to ensure that outages experienced over the weekend do not persist. As the Acting Managing Director indicated, these engagements are ongoing, and we are optimistic that everything will fall into place,” he stated.

The government reportedly reached a temporary agreement with the IPPs, making partial payments on the arrears and outlining a structured plan for settling the balance.

This agreement is expected to stabilise electricity generation and ease tensions within the energy sector.

While ECG has pledged consistent power delivery, industry stakeholders are urging the government to establish a more sustainable financial framework to prevent similar disputes in the future.

They emphasise the need for long-term solutions to ensure the reliability of Ghana’s energy infrastructure and avoid disruptions to power supply.

In March 2024, a Ranking Member of the Energy Committee of Parliament, John Jinapor disclosed that the Electricity Company of Ghana (ECG) is grappling with a colossal debt of $1.5 billion.

According to Mr. Jinapor, this massive debt is primarily due to ECG’s failure to meet its financial obligations to Independent Power Producers (IPPs) and its inability to fully settle bills for purchased electricity.

Additionally, Mr. Jinapor criticised ECG for its wasteful spending on items like cables, malfunctioning meters, and unnecessary contracts.

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