– Over ECG’s Unpaid Debts
Sunon Asogli Power (Ghana) Limited has halted operations at its 560MW power plant due to unpaid debts owed by the Electricity Company of Ghana (ECG).
The plant was shut down on October 8, 2024, at 5 PM, after the company struggled to keep it running without ECG settling its outstanding bills.
In a press statement released on October 16, Sunon Asogli expressed regret over the shutdown, explaining that it had no choice but to stop operations because ECG had not honored its payment obligations. Despite ongoing promises from ECG to resolve the issue, the debts remain unpaid.
Sunon Asogli also pointed out that it had been patient and cooperative in its dealings with ECG, even refraining from billing them for idle capacity charges, unlike other power producers. However, as of the end of September, ECG owes the company $259 million, excluding fuel costs.
The company’s debt situation has worsened, with the net balance growing by 23% between January and September 2024. Despite this, only 22.6% of the invoices for that period have been paid through the Cash Waterfall Mechanism.
Sunon Asogli expressed concern about the impact this shutdown will have on the country’s power supply and called on the Ministry of Finance to intervene quickly so they can resume operations. The company stressed that resolving the issue is critical to stabilizing the national power supply and preventing further disruptions.
The plant accounts for a substantial portion of Ghana’s electricity supply, and its closure exacerbates an already fragile power situation in the country. This development could lead to increased power outages, “dumsor”, affecting businesses, industries, and households alike.
