In a recent announcement, Sunon Asogli Power (Ghana) Limited revealed the unfortunate shutdown of its 560MW power plant. This decision was prompted by the Electricity Company of Ghana’s (ECG) failure to fulfill its overdue payment obligations, rendering Sunon Asogli unable to sustain its operations.
As of the end of September 2024, ECG has accrued a substantial net receivable debt of $259 million (excluding fuel) owed to Sunon Asogli. Despite the power company’s decision not to invoice ECG for idle capacity, the outstanding debt has surged by 23% between January and September 2024. Shockingly, only 22.6% of the invoices for that period have been settled through the Cash Waterfall Mechanism.
In a statement, Sunon Asogli Power (Ghana) expressed its disappointment over the necessity of the shutdown and highlighted its history of leniency in dealings with ECG and the government. Unlike other independent power producers, Sunon Asogli has refrained from invoicing ECG for accrued idle capacity charges, yet the substantial outstanding debt remains.
While acknowledging the regrettable impact of the plant’s shutdown on the national power supply, Sunon Asogli emphasized that it had no viable alternative. The company has urged the Ministry of Finance to intervene and facilitate a prompt resolution that would enable the resumption of operations at the earliest opportunity.
The implications of this shutdown are significant, and it is imperative for all stakeholders to work towards a swift and equitable solution. The Ministry of Finance's intervention is crucial in ensuring the restoration of operations at the Sunon Asogli Power plant, thereby mitigating potential repercussions on the national power supply.
We will continue to monitor developments in this situation and remain hopeful for a timely resolution that will benefit all parties involved.
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