General News

Ghana independent power producer suspends power supply over unpaid government debt

Date: Dec 5, 2023

Ghanaian independent power producer Sunon Asogli indefinitely suspended operations at its 560 MW gas-fired power plant on Monday, citing unpaid government debt and what it called unproductive engagements to find a solution.

"This is our last resort. The accumulating unpaid bills have significantly impacted our operational capacities, making it unsustainable to continue without addressing these financial challenges," it said in a statement.

The state-run Electricity Company of Ghana did not immediately respond to a request for comment.

The government has been seeking a debt deal with independent power producers (IPP) as it grapples with its worst economic crisis in a generation, characterised by double-digit inflation and ballooning public debt.

In July, the IPPs reached an interim deal with the Electricity Company of Ghana over arrears owed to them. However, they warned that if the debt issue remains unresolved they would shut down without any further notice.

--Reuters--

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