IPPs ready to renegotiate ‘take or pay’ power deals

The Chamber of Independent Power Producers, Power Distribution Companies and Bulk Consumers, Ghana (CIPBiD) has indicated its readiness to meet government for renegotiation of all ‘take or pay’ power deals.

Elikplim K. Apetorgbor,   Chief Executive Officer of the Chamber, however, cautioned that, the  Chamber would only accept new terms which were “favourable to the operations of Independent Power Producers (IPPs) and protect the investments and interests of shareholders.”  

Although, he did not describe government’s decision to pay for only power consumed as hasty and premature, he said such a decision could only be arrived at “if we look at the new contractual agreement and we like it.”

He was speaking in an interview during the inauguration of the 13-member governing board of the CIPBiD in Accra yesterday.

Chaired by Togbe Afede XIV, President of the National House of Chiefs, other members include Kwame Pianim, Finance and Business Consultant and former Chairman of the Public Utilities and Regulatory Commission (PURC), Samuel Nana Brew- Butler, Director, Cenpower Generations; Qun Yang, Chairman, Sunon Asogli Power Ghana Limited; Reginald France, Board Member, Early Power Limited and Daniel Acheampong, Chief Executive Officer, Volta Aluminium Company (Valco).

Bhavesh Kumar, Managing Director, B5 Plus Limited; Murat Captug, Country Director, Aksa Energy; Kelvin Wu, Managing Director, BXC; Volkan Buyukbicer, Country Manager, Karpowership; Victor Noja, CEO, CENIT Power; Norbert Anku, Managing Director, Enclave Power and David Kwadzo Ametefe, Former Commissioner, PURC make up the other members of the Board.

As a commercial transaction, Mr Apetorgbor said the current terms in the power agreement were risk mitigating clauses which favoured both the power producers and the government, adding that the government could not unilaterally take a decision to the disadvantage of the IPPs.

He said a comprehensive approach which addresses other challenges in the energy sector was necessary in ensuring sustainable and efficient power supply in the country.

The Chamber, the CEO stated, was looking up to the government to commence the processes of engagement and discussions on measures intended to clean up the sector.

In his acceptance speech, Togbe Afede XIV, explained that, the CIPBiD was a necessary platform to coordinate the activities of IPPs and other members to improve the country’s energy sector to spur economic growth.

In addition to working for the good of the national economy, he said the Chamber would also advocate and lobby for policies that would promote the best interest of its members and organise skills training and workshops to ensure members were abreast with best practices.

The Board, he stated, was ready to provide the right leadership and strategy to enhance the industry’s commercial viability and sustainability.

Ebenezer Baiden, Energy Economist with the Electricity Company of Ghana (ECG), called on the Chamber to analyse the Energy Sector Reform structure and make proposals to improve electricity services and build strong collaboration between power generators and stakeholders to chart a path to address some of the challenges facing power generators.

BY CLAUDE NYARKO ADAMS

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