The acting Managing Director (MD) of the Electricity Company of Ghana (ECG), Ing. David Asamoah, has disclosed that majority of the Company’s debts is as a result of forex shortfall.
Due to the huge sums of monies owed some nine Independent Power Producers (IPPs) supporting the state-owned energy sector, they have threatened a shutdown.
Sunon Asogli, one of the IPPs, in October 2024, shut down its plant completely due to a debt of $259 million.
The other eight IPPs in the country have also complained about the government’s inability to pay them for the power they generated and distributed to the nation.
But the acting boss of ECG says the power distribution company is struggling as a result of the forex fluctuations which is making the local currency weaker by the day.
“The truth is that the majority of these debts are as a result of forex shortfall.”
He explained that “each month, just from forex, we lose about 37 million. So, if you get the money and pay, getting the dollars becomes a problem. Sometimes, you will even make a payment, and it will take days or weeks before the IPPs receive it because of the dollar.”
He indicated that the company is running into debts because payments are not made to the power producers in Ghana cedis.
“If it were in cedis, I would pay. But now, when I pay the money, the banks have to get the dollars and convert them before they pay the IPPs, and by the time they pay, if the dollar increases, it means we still have a shortfall,” he said on Accra-based JoyNews Saturday, November 23, 2024.
He outlined the measures the company is putting in place to do its best in the midst of the forex challenges.
“So, for the payments, we are doing our best to pay,” he said, adding, “we have an agreement with them now on how it’s going to be paid. ECG will pay part, and the Ministry will come in. Just yesterday [Friday], they sent me a message saying they have agreed.”
Following the latest arrangements, the ECG boss noted that the IPPs would be resuming work soon, with Sunon Asogli planning on resumption in the coming weeks, whilst the others who have reduced their supply will be increasing their output.
The IPPs are private energy firms that produce and supply additional power to the nation in support of the Akosombo plant, which is a state-owned company.
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