Sunon Asogli Power (Ghana) Limited has shut down its 560MW power plant due to the Electricity Company of Ghana’s (ECG) failure to meet overdue payment obligations, significantly hindering the company’s ability to fund its operations.
In a statement on October 16, 2024, Sunon Asogli reported that ECG owes a staggering $259 million (excluding fuel) as of the end of September 2024.
Despite opting not to invoice ECG for idle capacity, the outstanding debt has increased by 23% between January and September 2024.
Additionally, only 22.6% of the invoices during this period have been settled through the Cash Waterfall Mechanism.
“Sunon Asogli Power (Ghana) has over the years been very considerate in its dealings with ECG and the government, and, unlike other independent power producers, has not even invoiced ECG for accrued idle capacity charges.
“Despite this, ECG owes Sunon Asogli a net (excluding fuel) receivable amount of $259 million as of the end of September 2024.
“Our debt has grown by 23% on the net balance, between January 2024 and September 2024 and only 22.6% of the invoices for the period have been paid by ECG from the Cash Waterfall Mechanism,” he stated.
Expressing regret over the shutdown’s impact on the national power supply, Sunon Asogli emphasized the lack of alternatives. The company has called upon the Ministry of Finance to intervene and facilitate a resolution that will enable it to resume operations promptly.