Sunon Asogli shuts down operations over ECG’s $259 million debt

Sunon Asogli Power Ltd has suspended its operations, citing a mounting USD259 million debt owed by the Electricity Company of Ghana (ECG).

In a statement released on Tuesday, 16 October 2024, the power company revealed that it had been compelled to shut down its plants on Tuesday, 8 October 2024 at 5 PM, following ECG’s failure to settle its financial obligations.

“This difficult decision was necessitated by our inability to fund our operations because of the failure of the ECG to honour their overdue payment obligations and their various promises to that effect,” the company stated.

The power producer emphasised its longstanding cooperation with ECG and the government, noting that it had refrained from billing the electricity distributor for idle capacity charges over the years, despite the accumulating debt.

“Despite this, ECG owes Sunon Asogli a net receivable amount of USD259 million as at the end of September 2024,” the statement added.

Sunon Asogli expressed frustration over the growing debt, which increased by 23 per cent between January and September 2024. Only 22.6 per cent of the invoices issued during this period were settled through the Cash Waterfall Mechanism—a system designed to equitably distribute funds to power producers.

Warning of the potential impact on Ghana’s electricity supply, the company urged ECG to take immediate action to settle the debt, emphasising the risk of prolonged power shortages if the situation remains unresolved.

Source:classfmonline.com