The Acting Managing Director of the Electricity Company of Ghana (ECG), Ing. Asamoah David, has attributed the company’s debt to Independent Power Producers (IPPs) to the volatility of the cedi against the dollar. Speaking on Joy News on Saturday, November 23, Ing. Asamoah explained that forex shortfalls significantly hinder ECG’s ability to meet its financial obligations.
“Each month, just from forex, we lose about 37 million. When payments are made in cedis, converting to dollars becomes a challenge, especially with fluctuating exchange rates,” he stated. This delay often results in shortfalls, even after payments are initiated.
Currently, ECG owes nine IPPs millions of US dollars, with Sunon Asogli shutting down operations in October due to a $259 million debt. The other eight IPPs have also expressed concerns over delayed payments for the power they supply to the national grid.
Ing. Asamoah revealed that the debts would be managed through a new arrangement involving ECG and the Energy Ministry. “We have an agreement now on how the debts will be shared. ECG will pay part, and the Ministry will assist,” he said, adding that efforts are underway to resolve the crisis.
Sunon Asogli is expected to resume operations in the coming weeks, while other IPPs that reduced their power supply are anticipated to increase their output as payments improve.
IPPs play a crucial role in Ghana’s energy sector by supplementing state-owned Akosombo plant, which remains a key source of the nation’s power supply.