Sunon Asogli shuts down 560MW power plant due to $259M debt owed by ECG

Sunon Asogli Power (Ghana) Limited has halted operations at its 560MW power plant, citing the Electricity Company of Ghana’s (ECG) failure to settle an outstanding debt of $259 million.

The company, in a statement on October 16, 2024, disclosed that the amount, which excludes fuel costs, reflects the net receivable as of the end of September 2024.

Despite not billing ECG for idle capacity, the debt has increased by 23% between January and September 2024. During this period, only 22.6% of the invoices were settled through the Cash Waterfall Mechanism.

“Sunon Asogli Power (Ghana) has consistently shown leniency in its dealings with ECG and the government, refraining from invoicing for idle capacity charges unlike other independent power producers,” the company stated.

“Yet, ECG’s debt to us stands at $259 million, excluding fuel, by the end of September 2024. The net balance has grown by 23%, and only 22.6% of invoices from January to September have been paid,” it added.

The company further expressed regret over the impact of the shutdown on the national power supply but stressed that it had no other choice.

Sunon Asogli also urged the Ministry of Finance to step in and help resolve the issue so that operations can resume as soon as possible.