ECG hasn't failed on its promise to pay IPPs - Managing Director

Managing Director of the Electricity Company of Ghana (ECG), Samuel Dubik Mahama, has said the power distribution company has in the past four months honoured its promise to settle debts owed all Independent Power Producers (IPPs).

He stressed that ECG has been consistent in the payment of its debts.

Speaking on JoyNews' PM Express, Mr Mahama said, "we work with something called the Cash Waterfall Mechanism (CWM) in distributing the resources under the collections that we make in a month. The new cash waterfall provides for tier one and tier two. So tier one is the IPPs, and I must say for four months now, the ECG has been paying the IPPs and ECG hasn’t failed, it has been constant with the IPPs, and you can check with all of them."

The Cash Waterfall Mechanism helps in determining the allocation of the monthly interest and the principal cash flows among the parties involved in a transaction.

It would be recalled that the IPPs which had earlier threatened to cut power supply from the national grid have since received a second payment for current bills owed from June 2023 directly from the power distribution company -ECG.

The IPPs which consist of Sunon Asogli; Cenpower; Karpowership; AKSA; Twin City Energy and CENIT said government owes them about US$2 billion in outstanding payments.

These IPPs play a pivotal role in providing power generation for distribution.

They have a controlling stake of about 47 percent of the country's total power generation mix.

SA/NOQ

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