Ghana could face a significant power crisis as three key power plants prepare to shut down operations next week due to the government’s failure to settle a $259 million debt owed to Independent Power Producers (IPPs). Dr. Elikplim Kwabla Apetorgbor, CEO of the IPP Chamber, issued this stark warning during an interview on JoyFM’s *Top Story* on November 19, 2024.
“If nothing is done by the end of this week, three key power plants will shut down,” Dr. Apetorgbor cautioned. While he declined to disclose the specific plants, he emphasized that the shutdown would be inevitable unless urgent measures are taken to address the mounting debt owed by the Electricity Company of Ghana (ECG).
Financial Crisis in the Power Sector
The announcement follows a string of financial challenges within Ghana’s power sector. Earlier, Sunon Asogli Power temporarily ceased operations over unpaid debts, only resuming after a renegotiated deal was announced by Finance Minister Dr. Mohammed Amin Adam. The minister had assured Ghanaians that the agreement with Sunon Asogli was part of broader restructuring efforts involving other IPPs.
However, Dr. Apetorgbor cast doubt on the minister’s claims, describing them as political statements without tangible outcomes. “If he has indeed reached an agreement, let him share the details with the public,” he demanded, adding that the alleged agreements had done little to ease the financial burden on IPPs.
Disputes Over Figures
Dr. Apetorgbor expressed frustration over the government’s approach to resolving the crisis, criticizing its inability to reconcile power sector finances. “The government does not even know how to account for the power sector figures. You can’t trust the numbers coming from them,” he claimed.
He dismissed the reconciliation efforts between the ECG and IPPs, insisting that they offered no solutions. According to him, IPPs are fully aware of the debts owed and have been transparent about their financial demands.
What’s at Stake?
The potential shutdown of three major power plants would exacerbate existing energy challenges in the country, potentially leading to widespread power outages and disruptions to businesses and households. It would also erode public confidence in the government’s ability to manage the energy sector effectively.
The IPPs have called for urgent action from the government, warning that failure to settle the debt by the end of the week will leave them with no choice but to halt operations.
A Call for Transparency
As Ghana edges closer to this looming power crisis, stakeholders are urging the government to adopt a more transparent and collaborative approach to addressing the financial woes of the energy sector. While the Finance Ministry has promised stability, it remains to be seen whether it can back these assurances with concrete action to avert the crisis.
With time running out, the ball is in the government’s court to prevent a nationwide power shutdown and restore confidence in its ability to manage the energy sector.
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