The Finance Minister, Ken Ofori-Atta, says the government is engaging with the Independent Power Producers (IPPs) to address the impact of excess capacity payments on the economy.
According to him, the government was considering ways to “restructure the accrued outstanding balances”.
Delivering the mid-year budget review on Monday, Mr Ofori-Atta noted that the discussion would also be geared towards the “elimination of payment shortfalls and arrears accrued in the energy sector”.
The government’s indebtedness to the Independent Power Producers (IPPs) has increased from $2 billion in June 2023 to a current $2.2 billion.
On the back of the debts owed, IPPs on July 27, 2023 held an emergency meeting to strategise on how to retrieve some of the debt.
Early this month, the IPPs called off a planned shutdown after receiving a payment offer from the Electricity Company of Ghana (ECG).
The ECG in that agreement promised to stay current with payment to the IPPs from July 2023, while it continues to negotiate on how to clear the $2 billion-legacy debt.
Reacting to the Minister’s statement, the Chief Executive Officer of the Chamber of Independent Power Producers, Elikplim Kwabla Apetorgbor, said the debt owed IPPs would not be restructured as long as the arrears represent the exact cost of their service.
Speaking on Joy FM’s Top Story, Mr Apetorgbor stated that the IPPs debt would not allow any restructuring by the government under any circumstance.
