Sunon Asogli Power (Ghana) Limited has announced the shutdown of its 560MW power plant since Tuesday, October 8, 2024, citing the Electricity Company of Ghana’s (ECG) failure to settle overdue payment obligations.
In a statement signed by its Chairman, Qun Yang, the company expressed regret over the decision, explaining that ECG’s prolonged failure to make payments had significantly hampered Sunon Asogli’s ability to sustain operations.
The company noted its long-standing cooperation with ECG and the government, pointing out that unlike other independent power producers, it had not billed ECG for idle capacity charges despite being owed a net receivable of $259 million as of September 2024.
Sunon Asogli also revealed that ECG’s debt increased by 23% between January and September 2024, while only 22.6% of the invoices issued during this period were paid through the Cash Waterfall Mechanism.
“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. Despite this, ECG owes Sunon Asogli a net (excluding fuel) receivable amount of $259 million as of the end of September 2024.
“Our debt has grown by 23% on the net balance, between January 2024 and September 2024 and only 22.6% of the invoices for the period has been paid by ECG from the Cash Waterfall Mechanism.
“We deeply regret the impact of this decision on the national power supply,” part of the statement read.
Sunon Asogli Power apologises for the impact of the shutdown on the national power supply and hopes for a swift resolution to the ongoing financial challenges.
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