- Suspension of the Planned Shutdown is a result of the intervention and assurance of the Minister of Finance and Minister of State.
- Sunon Asogli Power wanted to shut its plant due to avoidable delays in payment from the GoG/Electricity Company of Ghana for power supplied.
Sunon Asogli Power (Ghana) Limited has suspended the shutdown of its plant for one week. According to the company, this is “in view of the intervention and assurance of the Minister of Finance and Minister of State.”
Earlier, the company, in a letter addressed to the Electricity Company of Ghana (ECG), reads, “Sunon Asogli Power (Ghana) Limited Company announces with regret an indefinite suspension of operations at the Sunon Asogli Power Plant, effective Monday, 4th December 2023 at 6 PM. This difficult decision became necessary due to avoidable delays in payment from the GoG/Electricity Company of Ghana for power supplied. This also includes the unproductive engagements to find an amicable solution to the indebtedness.”
The company complained that the accumulating unpaid bills have significantly impacted its operational capacity. This makes it unsustainable to continue without addressing these financial challenges. Over the years, Independent Power Producers (IPPs) have complained about the government’s indebtedness to them. However, several efforts, including threats to suspend operations, have not yielded any substantial results.
As of July 2023, there were reports that the government’s debt to the IPPs had hit about $1.6 billion. The IPPs had described the recent 1.52 per cent reduction in electricity tariffs announced by the Public Utilities Regulatory Commission as unacceptable. The IPPs said the reduction would affect ECG’s debt restructuring efforts. The President of the IPPs, Dr. Elikplim Apetorgbor, said the ECG will struggle to pay its debt.
