US$600m energy sector debt threatens nationwide ‘dumsor’

US$600m energy sector debt threatens nationwide ‘dumsor’

Ghana is on the verge of experiencing grave nationwide power outage if some US$600 million owed members of the Chamber of Independent Power Producers

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Ghana is on the verge of experiencing grave nationwide power outage if some US$600 million owed members of the Chamber of Independent Power Producers and Bulk Consumers (CIPDIB) is not settled.

Though the government has quickly hinted of negotiations and plans to pay get the debt cleared, CIPDIB, in a statement, said its members would be compelled to shut down all their plants within seven days, should the payment be belated.

The Chief Executive Officer of CIPDIB, Elikplim Kwabla Apetorgbor, in a statement, urged the government, through the Ministry of Energy, to compel the Power Distribution Services (PDS) to expressly pay all accumulated invoices to the IPPs within the next seven days.

The statement further urged the government not to only make PDS pay its debts to the IPPs but also be made to pay interest on all overdue invoices, which the IPPs could have profitably utilised.

It also called on the Millennium Development Authority (MiDA) to compel PDS to adhere to best business practices and respect the terms of the PPAs and ensure that the nation derives the optimum benefit from the concession arrangement.

“Should PDS fail to respect the terms of the PPA and make payment to the IPPs within the 7-8 working days period, our members would be left with no choice than to shut down PDS’s plants as they could not continue to be saddled with huge debts,” CIPDIB warned.

Story by Umar Sheriff / awakenewsonline.com

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