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Electricity Company of Ghana Settles Debts to Independent Power Producers (IPPs)

In a recent development, XtraNewsPage reports that the Electricity Company of Ghana (ECG) has successfully resolved its outstanding debts to all Independent Power Producers (IPPs) for the months of June and July.

This comes after concerns were raised by the power generation companies regarding overdue payments.

Sources close to XtraNewsPage have confirmed that all IPPs have received a second payment for their current bills from June, directly disbursed by the ECG.

The external communications manager for the ECG, Leila Abubakari, revealed that measures have been implemented to ensure that the arrears owed to the IPPs will be eventually settled.

Abubakari explained, “We have promised them that the current bills that they are raising for us will be paid because we have found a way of increasing our revenue through our digitalization process.

The bills that are raised for us on a monthly basis will be honored while we have discussions about how to clear the debt that accrued over the past few years.”

She further emphasized that the current situation involves high-level discussions between the ECG, the Ministry of Energy, the Ministry of Finance, and the IPPs.

Despite the challenges, both parties are reportedly committed to a productive development partnership.

Previously, the Chamber of Independent Power Producers had issued warnings of potential nationwide power cuts due to the outstanding payments. However, these threats have been temporarily alleviated following constructive discussions between the Chamber and the ECG.

The IPPs had advocated for a 30 percent interim payment of the debts, which had grown to over $2 billion.

While the ECG has received invoices for the debts, the information available to us suggests that the ECG is committed to ensuring timely payments moving forward.