- Sunon Asogli Power shuts down over $259M ECG debt
- Debt grows 23% between Jan-Sep 2024
- Shutdown impacts national power supply
Independent Power Producer (IPP) Sunon Asogli Power Limited has officially announced a shutdown, citing significant accumulated debt owed by the Electricity Company of Ghana (ECG). The company reported that its debt has surged by 23% from January to September 2024, reaching a total of $259 million.
The shutdown took effect on October 8, 2024, as the company stated it was no longer able to sustain operations. “Sunon Asogli Power (Ghana) Limited regrets that they have been compelled to suspend operations since Tuesday, 8th October 2024. The shutdown happened at 5 PM that day. 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,” a company spokesperson said.
The firm detailed that only 22.6% of the invoices for the specified period have been paid by ECG through the Cash Waterfall Mechanism. “Our debt has grown by 23% on the net balance, between January 2024 and September 2024,” they noted.
Furthermore, the company emphasized its historical patience with ECG and the government, stating, “Sunon Asogli Power (Ghana) has over the years been very considerate in its dealings with ECG and the government, and, unlike other independent power producers, has not even invoiced ECG for accrued idle capacity charges.”
Expressing concern over the implications of its shutdown on the national power supply, Sunon Asogli Power expressed hope for timely intervention from the Ministry of Finance to address the situation. It is worth noting that the company previously shut down operations in December 2023 due to accrued debt, though half of that debt was settled within days.
