Govt Averts Dumsor

Elikplim Kwabla Apetorgbor, Chief Executive Officer of the Chamber of Independent Power Producers, Distributors, and Bulk Consumers (CIPDiB)


In a last-minute effort to prevent a major power crisis, the government has made a payment offer to the Independent Power Producers (IPPs) after an emergency meeting held on Friday, June 30, 2023.

The offer came in response to the IPPs’ demand for a 30 percent interim payment of the outstanding US$1.7 billion debt owed to them by the Electricity Company of Ghana (ECG).

The IPPs, which account for approximately 50 percent of the power generated on the national grid, had threatened to shut down their power plants effective July 1, 2023, due to the government’s failure to address the arrears owed to them.

However, following the government’s payment offer, the IPPs have decided to rescind their decision and continue operations.

“As part of the understanding reached, all the IPPs have received an offer of payments from ECG to enable them operate in the interim thereby providing the Government of Ghana (GOG) and ECG the needed grace period to address the outstanding arrears in the energy sector and to meet their contractual obligations”, the IPPs said in a statement issued on Friday night.

The Chamber of Independent Power Producers (IPPs), representing well-known companies such as Sunon Asogli, Cenpower, Karpowership, AKSA, Twin City Energy, and CENIT, had issued a directive to its members to suspend power supply to the national grid starting July 1.

This move was intended to put pressure on the government to address the outstanding arrears and resolve the debt crisis.

The IPPs argue that the unpaid debt, which has accumulated since January 2021 and amounts to approximately $1.73 billion, has severely affected their ability to access working capital.

This, in turn, has hindered their operations and prevented them from financing necessary supplies, particularly those priced in foreign currencies.

CEO of the Chamber of Independent Power Producers, Distributors, and Bulk Consumers (CIPDiB), Elikplim Kwabla Apetorgbor, expressed concerns about the lack of resources to continue power generation beyond June 30.

Despite their attempts to negotiate with creditors and stakeholders, the IPPs reached a point where they could not sustain power supply without receiving payment for their services.

The potential power crisis caused by the suspension of power supply by the IPPs could have had significant consequences for Ghana’s energy sector and the country as a whole.

In fact, the Chamber had in an email directed its members comprising Sunon Asogli, Cenpower, Karpowpership, AKSA, Twin City Energy and CENIT not to declare available power capacity to the system operator from July 1-8, 2023.

But the Chairman of the IPPs stated after the meeting with the government that, “we are pleased to have reached an interim understanding with ECG, which enables us to continue our operations for the benefit of the good people of Ghana.

We recognize the importance of our operations to the nation, and all the IPPs jointly remain committed to Ghana in delivering reliable power to the country.

We also appreciate the support and collaboration we have received from the general public and all well-meaning Ghanaians throughout this process.”

It was imperative for the government to address the outstanding arrears and find a sustainable solution to ensure uninterrupted electricity supply for businesses and households.

Immediate action is necessary to resolve the arrears dispute and prevent further disruptions to Ghana’s power supply.

The government has been urged to prioritize this issue to safeguard the nation’s energy needs.


By Vincent Kubi