There is a looming power crisis as the Chamber of Independent Power Producers (IPPs) has directed its members to cut supply to the national grid from tomorrow.
The directive not to declare their available power capacity to the system operator was to last till July 8, Citi FM, has reported.
Members of the Chamber include Sunon Asogli, Cenpower, Karpowership, AKSA, Twin City Energy and CENIT.
According to the report, the Chamber in an email directing its members to stop power production beginning tomorrow said "further to our planned industrial action on July 1, 2023, we would like each IPP to nominate nothing (zero nominations) and not declare availability to the System Operator, beginning July 1 to July 8, 2023."
According to the report, with just a day to the expiration of the deadline given by the Independent Power Producers to shut down over outstanding arrears, the group was yet to meet the government for a favourable response prompting this latest order.
The two parties were expected to meet this week for an agreement on demands for a 30 per cent interim payment of the arrears.
The IPPs argue that without receiving payment by the close of today, they will be unable to sustain the national grid.
"We are determined to get results at all cost," the mail concluded.
Independent power producers play a significant role in Ghana's energy sector, controlling 47 per cent of the country's total power generation mix and contributing 67 per cent of Ghana's thermal power.
As of May 2021, the six enterprises collectively claim an outstanding debt of approximately $1.73 billion, with the debt dating back to January 2021.
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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.
The Chief Executive Officer of the Chamber of Independent Power Producers, Distributors, and Bulk Consumers (CIPDiB), Elikplim Kwabla Apetorgbor, 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 30th June, and we are giving them (Finance Ministry) up to March. We didn't hear from them, but the fact is beyond June, we just don't have the resource to continue to supply," he stated.
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 are unable to repay their debt.
