Ghana's Sunon Asogli suspends power supply over unpaid government debt (updated)

SUNONWEALTH ELECTRIC MACHINE INDUSTRY

04/12/2023 23:22

(Adds detail from the statement, background)
       ACCRA, Dec 4 (Reuters) - Ghanaian independent power
producer Sunon Asogli indefinitely suspended operations at its
560 MW gas-fired power plant on Monday, citing unpaid government
debt and what it called unproductive engagements to find a
solution.
    "This is our last resort. The accumulating unpaid bills have
significantly impacted our operational capacities, making it
unsustainable to continue without addressing these financial
challenges," it said in a statement.
    The state-run Electricity Company of Ghana did not
immediately respond to a request for comment.
    The government has been seeking a debt deal with independent
power producers (IPP) as it grapples with its worst economic
crisis in a generation, characterised by double-digit inflation
and ballooning public debt.
    In July, the IPPs reached an interim deal with the
Electricity Company of Ghana over arrears owed to them. However,
they warned that if the debt issue remains unresolved they would
shut down without any further notice.
    It was not immediately clear what impact the sudden loss of
Sunon Asogli power would have on national supply to households
and businesses. 

 (Reporting by Maxwell Akalaare Adombila
Writing by Alessandra Prentice
Editing by Chris Reese and Josie Kao)
 ((alessandra.prentice@thomsonreuters.com;))