The independent power producers (IPPs), the electricity generation companies that control 50 percent of Ghana’s generation mix have suspended their planned shutdown.
The move follows their engagement with the Electricity Company of Ghana (ECG).
“As part of the understanding reached, all the IPPs have received an offer of payments from ECG to enable them operate in the interim thereby providing the Government of Ghana (GOG) and ECG the needed grace period to address the outstanding arrears in the energy sector and to meet their contractual obligations”, the IPPs said in a statement issued on Friday night.
The Chamber of Independent Power Generators, Ghana (IPGG) had earlier threatened to shutdown power production by June 30, 2023 if government failed to pay 30 percent of the debt owed them.
The nine companies said the Electricity Company of Ghana (ECG) owed them about the cedi equivalent of $1.4 billion as of February 2023.
The Independent Power Generators, Ghana (IPGG), formerly known as the Chamber of Independent Power Producers, Distributors and Bulk Consumers, wanted the government to pay up at least the overdue debt which constituted more than half of the indebtedness.
Their argument was that, they could not guarantee continuous production of power and that the situation was so dire that something urgent must be done.