Reconsider your decision to cut power supply from national grid – Mahama begs IPPs

Former president, John Dramani Mahama has called on the Independent Power Producers (IPPs) to reconsider their decision to cut power supply from the national grid beginning July 1, 2023.

The IPPs in recent weeks have been pressing on government to honor outstanding debt payments owed to them which amount to $1.73 billion.

Ahead of the move, John Mahama pleaded with the power producers to exercise restraint as the shutdown could negatively impact the lives of Ghanaian families and the economy.

“As a concerned citizen, I would like to make a plea to the Chamber of Independent Power Producers (IPPs) to reconsider their decision to shut down their plants effective July 1, 2023," he said in a Facebook post.

“If the IPPs, who account for almost half of the country’s total power generation and over two-thirds of Ghana’s thermal power, go through with this plan, it will have a disastrous impact on Ghana’s economy and negatively affect the lives and livelihoods of countless Ghanaian families,” Mahama added.

The former president further called on government to take stringent measures to avert the shutdown and expedite discussions with the IPPs in finding a suitable solution to pay the debt owed.

“It is imperative that these discussions begin without delay and be given the highest priority,” he added.

Government had earlier engaged the IPPs to restructure the debt payment but the move was quickly rejected by members of the Chamber.

In Ghana’s energy sector, the Independent Power Producers play a pivotal role in providing power generation for distribution. They have a controlling stake of 47 percent of the country's total power generation mix and contribute 67 percent of Ghana’s thermal power.

The six members of the IPPs have the capacity to produce 2,010 megawatts of power to support the national power grid.

Read John Mahama's post below



Watch the latest edition of BizTech below:





MA/FNOQ