The Independent Power Producers and Bulk Distributors will withdraw its services in the coming days, a situation that could trigger power cuts, popularly called dumsor.

Joy Business has a letter from the IPPs to Ghana Grid Company Limited with the Energy Minister and the Electricity Company of Ghana in copy.

The letter to GRIDCo said the action has become necessary as it demands ECG and government to settle at least 80% of its indebtedness worth $1 billion, in a matter of urgency.

It concluded that the respective Central Control Rooms of the IPPs are expected to communicate with the GRIDCo’s System Control Center for the potential shutdown.

Government exposure to IPPs

Though government has settled some of the debts to the IPPs, it still owe the power producers some substantial amount of money. 

The debt stood at about $1.4 billion in June 2020 but government has settled some and have been making bullet payment of subsequent power costs.

Already, government has settled the one billion dollar legacy debt owed bulk oil distributors through cash and bond.

The Energy Sector Support Levy Act was passed in 2015 and has since mobilized some revenue which has been used to settle debts owed Bulk Oil Distributors and some IPPs.