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Independent Power Producers (IPPs) will shut down their thermal plant at the end of this month if the government defaults on its debt obligation that amounts to more than $ 1.4 billion.
Consequently, this will lead to energy rationing if the planned closure of the plants takes place. According to a notice to the Minister of Energy, sighted by Joy Business, the IPPs warned that the closure is due to the difficult cash flow situation of the members, as they have not received enough payment to meet their gas bill and other financial obligations.
PPIs contribute approximately 45% of the more than 2,800 electricity demand peaks in the country. He said he urgently needed to pay his August gas bill and failure to do so would lead to a shutdown of the fuel supply. This would effectively hamper power generation and supply in the country.
Along with that, his next payment of the $ 51 million loan for the Phase II project to the China Development Bank and other financial obligations are due in September and October, respectively.
However, IPPs praised the government for the recent partial payment to some of its members, but maintained that it was not inadequate to meet all their financial needs.
He stressed that many of its members face a real danger of insolvency. He concluded by saying that despite the many difficulties he has faced, he has demonstrated his commitment to supporting the government’s efforts to restructure the power sector to put it on a sustainable path for the benefit of Ghanaians and businesses.
