The ranking member for mines and energy, John Jinapor, has urged the independent power producers (IPPs) to revisit their decision to cease operations on July 1 in an effort to prevent an impending energy crisis.
According to him the manner in which the government is handling the situation, particularly criticizing the Finance Minister’s approach.
He also raised concerns about the selective and discriminatory nature of the payments being made to certain preferred IPPs, while neglecting others.
“The Finance Minister instead of dealing with the Chamber of IPPs is engaged in selective and discriminatory payment, selecting some preferred IPPs, paying them and leaving them to their own fate,” he stated.
Mr Jinapor called on the government to display dedication in resolving the pressing debt problem that has led to this dire situation.
The IPPs, responsible for 50 percent of Ghana’s power generation, have issued a warning that they will cease operations unless the government makes an interim payment of 30 percent of the outstanding debt, which amounts to $1.7 billion, owed to them.
Understanding the seriousness of the matter, Jinapor appealed to the IPPs to grant the government and the nation additional time to address their grievances.
“Please reconsider your decision towards shutting your plants on July 1. Please give the government and the nation some more time,” Jinapor appealed.
Jinapor stressed the urgency of the situation and urged the government, specifically the President, to intervene promptly and ensure a swift resolution.
He emphasized that the outstanding debt amounted to around $1.7 billion, causing significant losses for the Electricity Company of Ghana (ECG) and substantial foreign exchange losses.
“The debt as we speak now is about $1.7 billion, and it keeps compounding. ECG’s losses today are over 30 percent, forex losses alone account for more than $300 million, fuel supplied that has not been paid runs into hundreds of millions of dollars,” he said.