Sunon Asogli Power Ltd has halted operations due to the Electricity Company of Ghana’s (ECG) failure to settle its outstanding debt of $259 million. In a statement released on October 16, 2024, the company announced that it ceased operations on October 8 at 5 PM.
“This difficult decision was necessitated by our inability to fund our operations because of the failure of the Electricity Company of Ghana to honour their overdue payment obligations and their various promises to that effect”, the statement highlighted.
The company emphasized its patience and cooperation with ECG and the government, noting that it has waived idle capacity charges, unlike other independent power producers. This decision was made necessary by ECG’s prolonged non-payment.
“Our debt has grown by 23% on the net balance, between January 2024 and September 2024 and only 22.6% of the invoices for the period has been paid by ECG from the Cash Waterfall Mechanism”, they stated.
Sunon Asogli Power Ltd’s shutdown may disrupt Ghana’s power supply and have economic consequences for stakeholders. The company stressed its considerate approach, but ECG’s unresolved debt left no alternative.
Read the full statement below: