Reconsider decision to shut down power plants – Mahama begs IPPs

Former President John Dramani Mahama has pleaded with the Independent Power Producers (IPPs) to reconsider their decision to shut down power plants due to the debts owed to them by the government.

Mr Mahama says that shutting down the plants will have a disastrous impact on Ghana’s economy and negatively affect the lives and livelihoods of countless Ghanaian families.

He further asked the government to take immediate steps to meet the IPPs and address their concerns.

He said it is imperative that these discussions begin without delay and be given the highest priority.

“As a concerned citizen, I would like to make a plea to the Chamber of Independent Power Producers (IPPs) to reconsider their decision to shut down their plants effective July 1, 2023.

“If the IPPs, who account for almost half of the country’s total power generation and over two-thirds of Ghana’s thermal power, go through with this plan, it will have a disastrous impact on Ghana’s economy and negatively affect the lives and livelihoods of countless Ghanaian families.

“I strongly urge the government to take immediate action and initiate discussions with the IPPs to find a sustainable solution to the impending power crisis. It is imperative that these discussions begin without delay and be given the highest priority,” the flagbearer of the National Democratic Congress (NDC) said in a Facebook post.

The IPPs had said they would not be in a position to continue the generation of electricity.

They said their earlier request to the Finance Minister to pay an interim 30 per cent of their arrears to enable them to continue to operate has not been heeded by the Ministry.

“We refer to our letters dated March 27, 2023, and May 25, 2023, with reference numbers IPGG/1/2023 and IPGG/2/2023 addressed to the Minister [Finance] by which the IPP Chamber stressed the urgent necessity for the government to prioritise payment of the outstanding arrears owed to members of the IPP Chamber to enable the IPPs to cover critical operational costs required to continue operations and pay overdue debt service”, he said in a statement to the Finance Minister.

The statement added “We had indicated in our letters that IPPs needed to receive an interim payment of 30% of the outstanding arrears of each IPP by 20th June 2023.

“Unfortunately, we have not seen any good faith indication or commitment of such impending payment from ECG/Government as of today, June 21, 2023, despite the Electricity Company of Ghana’s recent collection efforts, as reported in the media, which yielded circa ¢3.1 billion.

“At an emergency meeting of the IPP Chamber held on Tuesday 20th of June 2023, it was resolved that unless the IPPs receive the interim payment requested by the 30th June 2023 the members of the IPP Chmaber will not be in a position to guarantee the continued generation of electricity after 30th June.”

By 3news.com