There is a growing concern about a potential return to erratic power supply due to the government’s debt to the Independent Power Producers (IPPs). Despite increasing pressure on the government to release funds for the payment of its debt to the IPPs, it has remained adamant, even after the announcement of the IMF’s release of the third tranche of cash to enable it to meet its financial commitments.
Chief Executive of the Chamber of IPPs, Elikplim Kwabla Apetorgbor, has lamented that there’s been no demonstrable commitment or action taken by the government towards disbursing funds to them.
“The continuous delay in disbursing the IMF money to the IPPS is becoming frustrating. Some weeks ago, the Finance Minister, announced the availability of the funds to disburse to the IPPS, so we don’t know what is holding government back,” he stated.
He added “This posture is not helpful, and it’s really affecting the business. Now our lenders have heard the government is releasing funds, and they are also on us. So, we would like to appeal to the government to release the funds to tighten the ends of the agreement and to also to give us an assurance to sign whatever agreement we have with them.
Energy Analyst, Richmond Rockson, speaking on Hot Edition on 3FM, argued that the government must immediately make funds available to resolve the matter.
“The ECG was supposed to be paying some $43 million to these IPPS which is even woefully inadequate, so our recommendation is the government should immediately make some payments to the producers,” Mr Rockson said.
He added, “The renegotiation of power is good, but it’s bad for business if there is no funds to undertake these negotiations, and that can also turn bad for power generation and supply in the country”.
A member of Parliament’s Energy Committee, Edward Bawa, blamed the stalemate on what he says is the government’s misplaced priorities. But the Finance Minister, Dr Mohammed AminAdam, at a town hall meeting in Accra, on August 6, allayed fears of erratic power supply, hinting rather of an expected reduction in electricity tariffs.
