Sunon Asogli reverts plant shut down after Ofori Atta’s intervention
By: Doreen Boamah Darko
Sunon Asogli Power (Ghana) Limited, an independent power producer, has reversed its decision to shut down its power plant following intervention from the Finance Minister.
The company had initially announced an indefinite shutdown of its 560 Megawatts power plant due to outstanding debt owed by the Electricity Company of Ghana (ECG). The shutdown began on Monday evening.
In a statement, the company cited delays in payment from the government and unproductive negotiations as reasons for the shutdown. The accumulating bills had severely impacted their operations, making it unsustainable to continue without addressing the financial challenges.
However, in a subsequent statement, Sunon Asogli Power announced that the shutdown had been suspended for one week due to assurances from the Finance Minister. The company stated that an interim payment of $60 million would be made in two tranches, with the first tranche of $30 million to be paid during the current week.
The power cuts experienced by Ghanaians in recent times have raised concerns, but authorities in the power sector have assured the public that they are in control and that the country will not return to the days of severe power cuts known as ‘dumsor’.
The impact of Sunon Asogli Power’s shutdown was already being felt, as some areas of the country had been disconnected from the national grid.
Independent power producers have been grappling with the government’s outstanding debts and the impact on their operations. There have been threats from these producers to shut down their plants if the debts are not cleared.
The Independent Power Generators, Ghana, formerly known as the Ghana Chamber of Independent Power Producers, cautioned the government against restructuring the energy debts owed to them. They argued that it would be practically impossible to restructure debts amounting to $2.3 billion, as the producers themselves are heavily indebted to their suppliers and banks.
As of November 30, 2023, the government owed the independent power producers approximately $2.35 billion.