The management of the Electricity Company of Ghana (ECG) is scheduled to engage in discussions with independent power producer Sunon Asogli Power (Ghana) Limited on December 8 to negotiate payment plans for a $60 million debt owed to the power producer.

The power producer had halted its operations on Monday, December 4, citing the government's delay in fulfilling its financial commitments to power plants as the primary reason. However, it decided to temporarily suspend its shutdown for a week after receiving assurance from the government regarding the settlement of the outstanding debt.

The shutdown was initiated due to concerns raised by Sunon Asogli Power about the substantial impact of accumulating unpaid bills on its operational capacity, deeming it unsustainable to continue without addressing the financial challenges.

Sunon Asogli only suspended its decision following the Minister of Finance and Minister of State’s assurance and wrote in an acknowledgement note that “Kindly confirm our understanding that we shall be paid an interim sum of $60 million in two tranches. The first tranche $30 million to be paid this week and the second tranche in the week of 11th December 2023.”

The meeting scheduled for today will primarily address the mechanisms for settling the government's outstanding debt. Independent Power Producers (IPPs) have consistently raised concerns about the government's overdue payments, a longstanding issue with no significant resolution despite various attempts, including threats to suspend operations.

As of July 2023, reports indicated that the government's debt to IPPs had reached approximately $1.6 billion. The IPPs have expressed dissatisfaction with the recent 1.52 percent reduction in electricity tariffs announced by the Public Utilities Regulatory Commission (PURC), deeming it unacceptable.

IPPs argue that this tariff reduction will adversely impact the Electricity Company of Ghana's (ECG) efforts to restructure its debt. Dr. Elikplim Apetorgbor, the President of the IPPs, has emphasized that ECG will face challenges in meeting its financial obligations if the tariff reduction is implemented.