Dumsor Concerns: Minister Says Government And IPPs Have Agreed On $43m Monthly Payment For Energy

• The government and Independent Power Producers (IPPs) have reportedly agreed on monthly payment to settle debts
• The Minister of State for the Finance Ministry, Dr Mohammed Amin Adam, said the payment covers power generated and consumed by the state
• The IPPs had contemplated shutting down their plants because of the billions owed by the government

The Minister of State for the Finance Ministry, Dr Mohammed Amin Adam, has said the government has agreed to monthly payments to settle its debts to the Independent Power Producers.

According to the minister, the government has agreed to make monthly payments of about $43 million.

Speaking on Joy News, Adam said the payments would only cover power generated and consumed by the state because the government can’t afford to pay for the excess capacity.

“We have negotiated with them and we’ve agreed to some monthly payments and in every month, about $43 million is shared amongst them for energy supply because you know that they have excess capacity and so we have negotiated with them to pay for energy consumed which means we are currently not paying for the excess that we do not consume,” he said.

Read also

NAM1 provides evidence he's printing verification cards, urges Menzgold customers to get them for free

According to him, payments started in July 2023 and have continued into August 2023.

Adam added that the payments would have to be on time because of conditions under the IMF deal.

Looming dumsor over debt

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, was affecting their operation.

The IPPs announced to shut down 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.

Read also

NDC MPs to defy police for protest against BoG, maintain route despite security concerns

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