Sunon Asogli Power shuts down

SUNON Asogli Power Limited has announced the suspension of its operations due to a $259 million debt owed by the Electricity Company of Ghana (ECG).

The thermal power company, in a statement released today, revealed that it was forced to shut down its operations on Tuesday, October 8, 2024 as a result of ECG’s failure to honor its overdue payment obligations.

The company expressed regret over the shutdown, acknowledging the impact it would have on the national power supply. Sunon Asogli emphasized that this decision was difficult but necessary, as the growing debt made it impossible to continue funding operations.

The debt, which excludes fuel costs, has accumulated steadily, rising by 23% between January and September 2024.

According to the company, only 22.6% of its invoices during this period have been paid by ECG through the Cash Waterfall Mechanism.

“Sunon Asogli Power has over the years been very considerate in its dealings with ECG and the government, unlike other independent power producers, as we have not invoiced ECG for accrued idle capacity charges,” the company noted in its statement.

Despite this gesture of goodwill, the debt situation has become unsustainable, forcing the company to halt operations.

Sunon Asogli has called on the Ministry of Finance to intervene and facilitate a resolution to the matter, expressing hope that a quick settlement of the debt will allow it to resume operations and minimize disruptions to Ghana’s energy supply.

The shutdown of Sunon Asogli’s operations comes as a significant blow to the country’s power sector, as the company is one of Ghana’s key independent power producers.

The company’s inability to operate adds further strain to an already vulnerable power supply system.

The Ministry of Finance has yet to respond publicly to the company’s appeal for intervention, but stakeholders across the energy sector are closely monitoring the situation.

If the issue remains unresolved, it could have wider implications for electricity distribution and industrial productivity in the country.