There is an impending power crisis as the Chamber of Independent Power Producers (IPPs) has directed its members to cut supply to the national grid starting July 1.
The directive not to declare their available power capacity to the system operator is to last until July 8.
Members of the Chamber include Sunon Asogli, Cenpower, Karpowership, AKSA, Twin City Energy, and CENIT.
The Chamber, in an email directing its members and sighted by Citi News, said, "Further to our planned industrial action on July 1, 2023, we would like each IPP to nominate nothing (zero nominations) and not declare an availability to the System Operator, beginning July 1 to July 8, 2023".
The two parties were expected to meet this week for an agreement on demands for a 30 percent interim payment of the arrears.
The IPPs argue that without receiving payment by the close of June 30, they will be unable to sustain the national grid.
"We are determined to get results at all costs," the letter concluded.
Independent power producers play a significant role in Ghana’s energy sector, controlling 47 percent of the country’s total power generation mix and contributing 67 percent of Ghana’s thermal power.
As of May 2021, the six enterprises collectively claimed an outstanding debt of approximately $1.73 billion in cedis, with the debt dating back to January 2021.
The IPPs highlight that this debt has hindered their access to working capital, preventing them from financing crucial inputs such as chemicals for water treatment in thermal generators and other supplies, many of which are priced in foreign currency, primarily the US dollar.
Elikplim Kwabla Apetorgbor, the Chief Executive Officer of the Chamber of Independent Power Producers, Distributors, and Bulk Consumers (CIPDiB), expressed their inability to convince creditors, contractors, and other essential stakeholders to further delay payments and maintain operations.
"Basically, we are saying that we lack the resources to continue generation beyond June 30, and we are giving them [the Finance Ministry] up to March. We didn’t hear from them, but the fact is that beyond June, we just don’t have the resource to continue to supply."
The IPPs have also rejected any form of debt restructuring because they cannot explain to their lenders that Ghana’s economy is in shambles and they are unable to repay their debt.
ghanamediatrend
Citinewsroom
