Energy and Green Transition Minister John Abdulai Jinapor has taken decisive steps to address the financial crisis threatening Ghana’s power sector by directing that Early Power Limited (EPL) be included among TIER 1 power-producing companies.

The move aims to facilitate significant payments to EPL, which is owed $47 million in arrears.

The minister made this announcement on Tuesday, March 4, following a meeting with operators of Bridge Power Co. Ltd. The meeting was prompted by EPL’s recent decision to shut down operations due to the Electricity Company of Ghana’s (ECG) failure to clear outstanding payments for seven months of power supply.

Mr. Jinapor assured EPL of the government’s commitment to resolving the sector’s financial difficulties and preventing further disruptions to the country’s electricity supply.

Meanwhile, independent power producer Early Power has issued a strong warning about a potential shutdown if ECG does not settle its debt.

In a letter addressed to ECG’s Acting Managing Director on Friday, February 28, EPL expressed deep concern over ECG’s failure to meet its financial obligations, noting that $47,249,898.93 of the total debt had already surpassed the due date.

The letter, copied to the Minister for Finance, the Minister for Energy, the Executive Secretary of the Public Utilities Regulatory Commission (PURC), and the Board Chairman, highlighted the severe financial strain ECG’s default had placed on the company.

“As a result of ECG’s default in payment, the Seller finds itself in a precarious financial position and will not be able to meet its debt service obligations and operating costs,” Early Power stated.

The company set February 28, as the deadline for ECG to clear the overdue amount. It warned that failure to meet this deadline would force it to invoke provisions under the Power Purchase Agreement (PPA) and the Power Compact Operations Agreement (PCOA), which could lead to the suspension of electricity supply.

With EPL now classified as a TIER 1 power producer, it is expected that the government’s intervention will ensure timely payments and avert a potential energy crisis.

Ghana’s energy sector is facing another crisis as N-Gas Limited has formally notified the Volta River Authority (VRA) of its decision to halt gas supply to Ghana by March 6, 2025, due to unpaid arrears exceeding $75 million.

In a letter to VRA’s Managing Director on Tuesday, February 18, N-Gas expressed frustration over the continuous delays in payment despite previous assurances. The company highlighted the ripple effect on its own operations, as it has been unable to pay its gas suppliers and transporters since November 2024 due to the mounting debt.