The Institute for Energy Security (IES) has recommended that the government prioritise resolving the substantial debt owed to independent power producers (IPPs) before establishing any new energy authorities.
This follows concerns over the proposed draft bill that aims to merge VRA with Bui Power Authority, combine the Electricity Company of Ghana (ECG) with the Northern Electricity Distribution Company (NEDCo), and establish an independent Thermal Power Authority from VRA's thermal plants.
The government currently owes IPPs over US$2 billion, a situation that poses a significant threat to the stability of Ghana's electricity supply.
The Executive Director IES, Nana Amoasi VII in a statement on Sunday emphasised the critical role that IPPs play in maintaining the country's power supply.
He stressed that any threats of shutdown due to non-payment could severely impact the reliability of electricity across Ghana, potentially leading to widespread power outages and economic disruptions. "With the government currently owing independent power producers (IPPs) over US$2 billion, it is critical to address this debt before creating any new energy authorities." "The IPPs play a crucial role in maintaining power supply, and any shutdown threats due to non-payment could severely affect the reliability of Ghana's electricity supply," he stated