The Independent Power Producers (IPP) and Bulk Distributors have threatened to withdraw their services in the coming days, which is a situation that could trigger power cuts(dumsor).
A letter from the IPPs to Ghana Grid Company Limited said the action has become necessary as it demands the Electricity Company of Ghana and government to settle at least 80% of its debts worth $1 billion, in a matter of urgency.
The statement also indicated that the respective Central Control Rooms of the IPPs are expected to communicate with the GRIDCo’s System Control Center for the potential shutdown.
Though the government has settled some of the debts to the IPPs, it still owes the power producers some substantial amount of money.
The debt stood at about $1.4 billion in June 2020 but the government has settled some and has been making bullet payment of subsequent power costs.
However, the government has initially settled the one billion dollar legacy debt owed bulk oil distributors through cash and bond.
The Energy Sector Support Levy Act was passed in 2015 and has since mobilized some revenue which has been used to settle debts owed Bulk Oil Distributors and some IPPs.
