Govt, IPPs to meet next week over unpaid debt

The government and the Independent Power Producers (IPPs) are set to meet regarding the outstanding debts owed to the producers.

The Independent Power Producers (IPPs) in a letter threatened to suspend power supply from July 1, 2023, if an interim payment of 30% of the outstanding debts is not made.

The IPPs have expressed their inability to continue powering the national grid beyond June 30 unless they receive the outstanding payment.

To avert a potential shutdown that could have severe consequences for the power supply, the government has recognized the urgency of the situation and arranged a meeting with the Minister of Finance, which is set to take place next week.

Elikplim Kwabla Apetorgbor, the Chief Executive Officer of the Independent Power Producers, Distributors, and Bulk Consumers, has expressed his frustration over the delay in payment.

He emphasized that the IPPs expect to receive a payment within the agreed credit days for the services they have provided.

However, there have been issues with the CashWaterFall system, and the Ministry of Finance has now assumed responsibility for energy sector payments, prompting the IPPs to direct their communication to that department.

Given the IPPs’ concerns and their reliance on timely payments, the upcoming meeting with the Minister of Finance aims to establish a payment plan that will address the outstanding debts and ensure an uninterrupted power supply to the national grid.

The IPPs are eager to find a resolution to safeguard the sustainability of the power supply and mitigate any potential negative consequences that could arise from a shutdown.