Mahama Appeals To Power Producers Not To Shut Down Plants Over Debt: "It Will Destroy Ghana's Economy"

Mahama Appeals To Power Producers Not To Shut Down Plants Over Debt: "It Will Destroy Ghana's Economy"

  • John Dramani Mahama has told power producers that it would be disastrous if they shut down as planned between July 1 to July 8, 2023
  • According to the former president and NDC flagbearer for the 2024 elections, the move would have a debilitating effect on the economy and the livelihoods of Ghanaians
  • The opposition leader made the appeal on Friday, June 30, 2023, via a post on his official Facebook page

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John Dramani Mahama has pleaded with independent power producers to rescind a plan to shut down their plants on July 1, 2023, over the government's huge indebtedness.

The presidential candidate of the opposition NDC posted on Facebook on Friday that as a concerned citizen, he is worried about the implications of the planned shutdown on Ghana's economy and livelihoods.

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"It will have a disastrous impact on Ghana's economy and negatively affect the lives and livelihoods of countless Ghanaian families," he posted on June 30, 2023.
Mahama has appealed to independent power producers not to shut down on July 1, 2023 over government's indebtedness.
John Dramani Mahama (L) and a power pylon. Source: Facebook/JDMahama, Getty Images.
Source: UGC

Independent Power Producers told to suspend electricity supply from July 1

Ghanaian homes and businesses could be hit by load-shedding or Dumsor for at least one week if the IPPs carry out a plan to suspend power supply from July 1.

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The government has been indebted to the IPPs to the tune of about $1.73 billion since 2021. The IPPs contribute about half of all Ghana's electricity demand to the national grid.

The power producers have been pushing for the payment of at least 30% of the debt owed them but the government is yet to agree to their demand.

The six-member Chamber of Independent Power Producers has directed its members to shut down from July 1 to July 8, 2023, unless the government heed their demand to pay at least 30% of the debt it owes them.

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Mahama urges the government to sit down with IPPs

Mahama also urged the government to do its part to prevent an escalation of the problem.

"I strongly urge the government to take immediate action and initiate discussions with the IPPs to find a sustainable solution to the impending power crisis," he posted on Facebook.

Mahama said it is imperative that the discussions with the independent power producers begin without delay and be given the highest priority.

Electricity tariff increased by 18.36% reported in a separate story that power tariff was increased in May for the second time this year.

Electricity tariff was increased by 18.36%, prompting concerns from Ghanaian consumers.

In January 2023, the PURC announced that electricity would cost 29.96% more while water costs 8.3%.

The latest increase, according to PURC, is because the cost of producing electricity has gone up significantly and the 18.36% will help power producers to deliver on their mandate.

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Dumsor looms: Independent Power Producers to suspend power supply from July 1

We are not going back to dumsor

President Nana Akufo-Addo in the middle of June 2023 commissioned a key bulk electricity supply point at a short ceremony.

The event on Tuesday, June 13, 2023, saw the opening of a new substation, a 160 Kilovolt power infrastructure, that will deliver power to the busy and bustling Accra Central Business District.

Speaking at the inauguration, the president said the new power substation will help reduce system losses as required by the regulator PURC.

Two Chinese arrested over power theft

Also, reported that two Chinese nationals were arrested in April 2023 by National Security operatives for stealing power to run their manufacturing company.

Their company, Fenice Metal Technology, which is into electrical cables manufacturing have been stealing two-thirds of the power used at the facility.

Ishmael Oku, Revenue Protection and Technical investigation manager disclosed that the Chinese were arrested on Thursday, April 27, 2923.

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