Due to the Electricity Company of Ghana’s inability to meet its overdue payment obligations, Sunon Asogli Power (Ghana) Limited has decided to shut down its 560MW power plant.
This has led to Sunon Asogli being unable to sustain its operations due to lack of funding.
In a press release dated October 16, 2024, the company revealed that ECG has a net receivable balance of $259 million (excluding fuel) as of September 2024.
Even though Sunon Asogli chose not to bill ECG for unused capacity, the amount owed has risen by 23% from January to September 2024. Only 22.6% of the invoices during this time were paid through the Cash Waterfall Mechanism.
Over the years, Sunon Asogli Power (Ghana) has demonstrated a high level of consideration in its interactions with ECG and the government. Unlike other independent power producers, Sunon Asogli Power has not invoiced ECG for idle capacity charges that have accumulated.
As of the end of September 2024, ECG still owes Sunon Asogli a net (excluding fuel) receivable amount of $259 million.
He stated that from January 2024 to September 2024, our debt has increased by 23% on the net balance. Additionally, only 22.6% of the invoices for this period have been paid by ECG through the Cash Waterfall Mechanism.
Sunon Asogli acknowledged the negative consequences of the shutdown on the national power supply but maintained that there were no other options available.
The company urged the Ministry of Finance to step in and help find a solution that would enable it to quickly restart operations.
