Private power producers in Ghana may curtail power supply if the state power utility Electricity Company of Ghana (ECG) does not pay up a debt of 1.5 billion US dollars it owes the power producers, a statement said here on Monday.
The situation could plunge the country into darkness as the Independent Power Producers (IPPs) generate 2,600 Mega Watts (MW), or about 60 percent of the 4000 MW total generating-capacity of Ghana.
A similar debt situation compelled the government to pass the energy sector levies act (ESLA) in December 2015 to raise funds through special levies on petroleum products and energy utilities to pay off creditors of the state utility companies, ECG and the Volta River Authority (VRA).
Some of the liquidity problems that caused the collapse of nine Ghanaian banks between 2017 and this year were attributed to unpaid debts by these state utility companies.
“The cumulative outstanding debt position of the government of Ghana and ECG to IPPs alone has escalated to about USD 1.5 Billion,” the Chamber of Independent Power Producers Distributors and Bulk Consumers (CIPDiB) said in the statement. Enditem