Independent Power Producers threaten dumsor over ECG/PDS US$1.5bn debt

The Independent Power Producers (IPPs) have cautioned that the country could be plunged into dumsor if monies owed them by Electricity Company of Ghana or the former Power Distribution Services (PDS) are not paid on time.

A statement issued by the Chamber of Independent Power Producers, Distributors and Bulk Consumers (CIPDiB) stated that they are owed US$1.5 billion by ECG; a situation they argue puts the energy sector under “serious threat”.

“The cumulative outstanding debt position of the GoG/ECG to IPPs alone has escalated to about USD$1.5 Billion! The CIPDiB is once again compelled to ask that payment of the obligations of GoG/ECG be made as a matter of urgency,” the Chamber said in a statement issued on Monday.

The Independent Power Producers currently generate about 2,600 MW which is about 60 percent of the total generation in the country’s power sector.

 “We would urge the Government of Ghana and its agencies, including ECG and MiDA, as well as the MCC to co-operate to ensure that decisions are taken that enable Ghanaians to have access, affordably, to reliable energy supply,” the statement added.

IPPs in Ghana

The participation of IPPs in Ghana has continued to grow since the thermal Takoradi Power Station was first built in Aboadze in 2004. Indeed, IPPs are quickly catching up to public generation in terms of capacity.

As at October 2018, the power capacity that is provided by IPPs and non-state-run power plants in Ghana stands at 2,600 MW, compared to 2456 MW of installed capacity at the state-backed primary electricity generation utility Volta River Authority (VRA).

In total, there are nine IPPs providing electricity, including the 400-MW Bui Dam, seven thermal plants with installed capacity of 1505 MW, and the 20-MW solar plant completed by BXC Ghana, a subsidiary of China-based industrial conglomerate Beijing Fuxing Xiao-Cheng Electronic.

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Henry Cobblah

Henry Cobblah is a Tech Developer, Entrepreneur, and a Journalist. With over 15 Years of experience in the digital media industry, he writes for over 7 media agencies and shows up for TV and Radio discussions on Technology, Sports and Startup Discussions.

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