Independent power producers (IPPs) in Ghana have rescinded their threat to cut off electricity supply from their plants on 1 July, after reaching an interim deal with the state-owned Electricity Company of Ghana (ECG) over US$1.58bn in arrears owed to them by the state
IPPs have stood steadfast in their rejection of the government's proposal to restructure the debt concerned.
In May, the Independent Power Generators, Ghana (IPGG) rejected authorities' plans to restructure arrears owed to its members. It also threatened to shut down power production in July, should the government not meet its demand to settle 30% of the overdue amount to its members for them to cover operational costs and their own overdue debt. In a statement on Friday, 30 June, the IPGG announced that producers are suspending the shutdown after they reached an interim payment deal with the government and the ECG. The group said it will remain engaged with authorities to reach a permanent resolution on the outstanding debt owed to IPPs. These producers account for more than 50% of Ghana's national electricity production, according to a UN report published in 2021.
