Dumsor to ease as Government Reaches Agreement To Settle $20m Debt To Gas Supplier

• The government has agreed a payment plan with the West African Gas Pipeline Company to settle a $20 million debt
• West African Gas Pipeline Company stopped gas supply needed for power generation, leading to power cuts nationwide
• The Ghana Grid Company announced a supply gap of 550MW at peak time because of the limited gas supply

The government has reached a tentative payment plan with the West African Gas Pipeline Company (WAPCo) to settle the State's $20 million indebtedness and possibly avert the spate of power cuts.

WAPCO had stopped the gas supply required for power generation.

This plunged parts of the country into darkness, with the Ghana Grid Company (GRIDCo) saying there was a supply gap of 550MW at peak time.

Joy News reported that some power cuts would persist because there was no guarantee of immediate gas from Takoradi to Tema.

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Previous dumsor concerns

The government and Independent Power Producers earlier had to agree on monthly payments to settle debts.

The IPPs had contemplated shutting down their plants because of the billions owed by the government.

YEN.com.gh previously reported that a power crisis was looming in Ghana as independent power producers contemplated shutting down their plants after a meeting on Thursday.

The IPPs said the government's long-standing indebtedness to them, which is over $2 billion, affected their operation.

The IPPs announced a shutdown last month but changed their minds after appeals and a meeting with the power distributor, ECG.

Fears about the return of Dumsor started in May 2022

Meanwhile, YEN.com.gh reported that last year, the rampant unannounced power cuts in large areas of the country prompted concerns about the return of dumsor or intermittent power cuts.

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Experts were worried about the country's inability to meet the growing demand for electricity consumption.

But answers from the Energy Ministry and available data dispelled fears that dumsor was back.

At the time, the Chamber of Independent Power Producers and Bulk Consumers (CIPDiB) called for the inclusion of a $1.4 billion debt owed to them by the government in the mid-year budget review.

Source: YEN.com.gh