ECG partly settles $2bn debts owed Independent Power Producers

Recent reports indicate that the Electricity Company of Ghana (ECG) has successfully cleared outstanding debts owed to all Independent Power Producers (IPPs) for the months of June and July, following initial concerns expressed by these power generation companies.

All the IPPs have reportedly received a second payment for their current bills from June, and these payments were made directly by the ECG. ECG’s External Communications Manager, Leila Abubakari, revealed that strategic measures have been implemented to address the arrears owed to the IPPs over time.

Mr Abubakari stated, “We have promised them that the current bills that they are raising for us will be paid because we have found a way of increasing our revenue through our digitalization process… bills that are raised on a monthly basis will be honored while we have discussions about how to clear the debt that accrued over the past few years.”

The process involves high-level negotiations between ECG, the Ministry of Energy, the Ministry of Finance, and the IPPs. Mr Abubakari emphasized the cooperative atmosphere and shared commitment to a development partnership. She assured that current bills will be promptly paid, and discussions continue regarding clearing accumulated debts.

Earlier warnings of potential nationwide power cuts, voiced by the Chamber of Independent Power Producers, were temporarily averted after constructive dialogues between the Chamber and ECG. The IPPs had initially pressed for a 30 percent interim payment to address the debt, which had grown to over $2 billion.

Recent information suggests that invoices for the debts have been issued to the IPPs, and ECG has committed to staying current with future payments, signaling progress toward resolving the financial challenges in the power sector.

Source: Norvanreports