Sunon Asogli Power shuts down due to $259m debt owed by ECG

Sunon Asogli Power Ltd has announced the shutdown of its operations due to the inability of the Electricity Company of Ghana (ECG) to pay its $259 million debt.

The company in statement released on October 16, 2024 said it was compelled to shut down on October 8, at 5 PM due to the debt.

“This difficult decision was necessitated by our inability to fund our operations because of the failure of the ECG to honour their overdue payment obligations and their various promises to that effect”, the statement said.

It explained that Sunon Asogli Power has over the years been very considerate in its dealings with the ECG and the government and, unlike other independent power producers, has not invoiced ECG for accrued idle capacity charges.

“Despite this, ECG owes Sunon Asogli a net receivable amount of $259 million as at the end of September 2024”.

“Our debt has grown by 23 percent on the net balance, between January 2024 and September 2024 and only 22.6percent of the invoices for the period has been paid by ECG from the Cash Waterfall Mechanism”, the company lamented.

source: myjoyonline.com