The Electricity Company of Ghana (ECG) is facing a severe crisis as it struggles with mounting debts and the impending shutdown of Sunon Asogli Power (Ghana) Limited’s 560MW power plant.
Kodzo Yaotse, Policy Lead – Petroleum & Conventional Energy at the Africa Centre for Energy Policy (ACEP), warns that blackouts are imminent unless urgent measures are taken to negotiate a viable agreement with Sunon Asogli.
The company, which accounts for 10% of the nation’s installed generating capacity, is unable to fund its operations due to ECG’s failure to meet overdue payment obligations, leading to a staggering net receivable of $259 million.
Yaotse emphasized that the ECG’s inability to collect sufficient cash has exacerbated the situation, contributing to the accumulation of significant debt in the sector.
He points out that the recent $2 million demand from Sunon Asogli is merely a fraction of the overall debts owed, highlighting a lack of efficiency within the distribution system. With only 43% of power recovery from an output of 1000 megawatts, the system is operating at a loss, and there are doubts about the government’s capacity to settle these debts.
As Sunon Asogli’s shutdown looms, the company expresses regret over the potential impact on Ghana’s national power supply.
In a statement released on October 16, 2024, the company called on the Ministry of Finance to facilitate a resolution, stressing the urgency of the situation.
