Here is why IPPs suspended nationwide shutdown from July 1

Amidst threats of power shutdown by the Independent Power Producers (IPPs), the Managing Director of the Electricity Company (ECG), Samuel Dubik Mahama, has said that monies owed IPPs have not yet been paid but there has been a significate progress in agreement.

According to a report on myjoyonline.com, the MD of ECG said that the IPPs are calm because there is an agreement and a favourable payment plan.

Mr Mahama further said the IPPs have also been given some level of certainty required to operate in the country.

He said the uncertainty on the part of the IPPs is what triggered them to threaten to shut down their power plants.

He said, “Would you be surprised if I said we’ve not given them anything? We’ve agreed on numbers across the board for everybody and everybody knows what they have to do and get back to us [ECG] by the middle of the week.”

“When they do that, whatever needs to be credited to them will be credited to them immediately,” he said.

The comments Samuel Dubik Mahama comes on the back of threats by the Independent Power Producers (IPP) to shut down their plants from Saturday, July 1, 2023, if the government fails to pay 30 per cent of the $1.73 billion debt owed them.

But in a meeting held with ECG on Friday, the IPPs suspended the planned shutdown of power plants.

“We used interim in two forms. The other one is that they [IPPs] are waiting to hear how the legacy debt issue is going to be addressed and what the formula or style would be for us to talk and move forward.

“But in truth, nobody wants to keep spending not knowing where the money is coming from. That is why we agreed on the way forward now and the way forward is comfortable for all of them so we are in good shape,” he continued.

When asked about the path to a permanent solution, Mahama stated that ECG will ensure that the agreement to stay current with the IPPs remains in place.