Parliament Intervenes In ECG Indebtedness To IPPs

Parliament’s select committee on Mines and Energy will a crunch meeting with players in the energy sector next week to address the concerns raised by Independent Power Producers (IPPs) regarding the significant outstanding debts of $ 1.7 billion owed it by the Electricity Company of Ghana (ECG).

According to the IPPs, the outstanding debt pose a threat to their continues operations and the stability of the national grid supply system as they had already suspended a planned shutdown earlier billed to take effect last weekend after reaching an interim deal with the state-run Electricity Company of Ghana over the $1.7 billion arrears owed to them.

Chairman of the Mines and Energy Committee, Samuel Atta Akyea said the meeting is crucial to help address concerns of the stakeholders in Ghana’s value-chain.

The meeting is expected to involve the committee, the Finance Ministry, the Electricity Company of Ghana (ECG), and the IPPs, is aimed at finding a solution to the crisis.

“It is crucial for the Minister of Finance, the Boards of ECG, and the committee to establish a clear roadmap for resolving this matter,” said Mr. Atta Akyea.

“We must avoid a situation where the government is pressured into taking actions that could be perceived as blackmail,” he added.

He added that the committee is “committed to finding a solution that is in the best interests of all stakeholders.”

The IPPs, which control about 50 percent of the country’s generation mix, have highlighted that the outstanding debts have 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 meeting is scheduled to take place on Monday or Tuesday of next week.